S&P 500 and Nasdaq futures are also looking to recoup steep losses
Stock futures are looking to rebound from a market meltdown yesterday, after the Federal Reserve forecasted fewer-than-expected rate cuts in 2025. Dow Jones Industrial Average (DJIA) futures are up over 300 points, with the blue-chip index fresh off its historic 10th-straight loss and worst day since 2022. Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) futures are also higher, the former eyeing a triple-digit pop of its own.
This morning’s bounce comes even as the 10-year Treasury yield extends its climb after yesterday crossing 4.5%. Investors are also digesting a drop in weekly jobless claims to 220,000, as well as an upwardly revised third-quarter gross domestic product reading (GDP) of 3.6%. Plus, the Philadelphia Fed manufacturing survey fell to -16.4 in December.
Continue reading for more on today’s market, including:
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 2.5 million call contracts and 1.1 million put contracts exchanged on Wednesday. The single-session equity put/call ratio fell to 0.45 and the 21-day moving average remained at 0.61.
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I.T. services firm Accenture Plc (NYSE:ACN) announced better-than-expected fiscal first-quarter revenue and lifted its full-year outlook. Accenture stock is up 5.7% before the bell and has added 21.8% in the last six months.
- Lennar Corp (NYSE:LEN) stock is down 8.3% in premarket trading, following the construction company’s top- and bottom-line miss for the fiscal first quarter. LEN shed more than 22% in the last three months.
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Micron Technology Inc (NASDAQ:MU) stock is brushing off a revenue beat for the fiscal first quarter, after the semiconductor giant issued disappointing guidance for the fiscal second quarter. MU is down 11.2% ahead of the open, but still sports a 21.7% lead for 2024.
- Key economic indicators slated for release amid holiday closures.
European, Asian Markets Respond to Stateside Rate Cut
Global interest rate updates are in focus today, sending Asian markets lower Thursday. On the heels of a third consecutive interest rate cut in the States, the Bank of Japan (BoJ) decided to keep rates steady at 0.25%. The won weakened to its lowest level since early 2009, while Hong Kong’s Monetary Authority followed suit of the U.S., slashing interest rates 25 basis points. In response, Hong Kong’s Hang Seng fell 0.6%, China’s Shanghai Composite dropped 0.4%, Japan’s Nikkei shed 0.7%, and South Korea’s Kospi suffered the most, plunging 2%.
European markets are also in the red following the Fed’s updates, while the U.K.’s Bank of England (BoE) kept interest rates unchanged at 4.75%. Meanwhile, in France the business confidence indicator dropped in December for the third straight report, reading at 94 — lower than the long-term average. A survey out of Germany’s GfK and Nuremberg Institute for Market Decisions (NIM) showed consumer sentiment grew to -21.3 points heading into January, though a “sustained recovery” is not anticipated. At last glance, France’s CAC 40 is off 1.1%, Germany’s DAX has shed 0.9%, and London’s FTSE 100 is down 1.2%.