Dow futures rise as post

-- U.S. stock futures climbed higher Friday,Bond Forex Trading Platform continuing the post-Fed rally on optimism that the U.S. central bank will be able to engineer a soft landing next year, curbing inflation without sending the economy into recession.

By 06:30 ET (11:30 GMT), the contract was up 115 points, or 0.3%, traded 15 points, or 0.3%, higher and climbed 60 points, or 0.4%.

The main Wall Street indices all finished in the green in the prior session, with all three on pace for their seventh-consecutive positive week - which would be their best weekly winning streak since 2019. 

The blue chip gained over 150 points, or 0.4%, posting its second straight all-time closing high, while the broad-based gained 0.3% and the tech heavy 0.2%.

Fed stance breeds soft landing optimism

This positivity has been boosted by the Federal Reserve signaling that it  would start to cut interest rates from more than two-decade highs next year. Stronger-than-anticipated data on Thursday, along with cooling annual figures earlier in the week, have also buoyed hopes that the U.S. economy will recover strongly in 2024.

HSBC now expects the S&P 500 to end 2024 at 5,000, roughly representing a 6% gain for the benchmark index from Thursday's closing level, with the potential for at least a 20% return from now through the six months following the first rate cut, which the firm expects in the third quarter of 2024.

There is more economic data to study Friday, including November and production, but most eyes will be on the data for December, due after the opening bell.

The equivalent data in the eurozone, released earlier Friday, showed that the downturn in business activity surprisingly deepened in December, indicating the bloc's economy is almost certainly in recession.

Costco benefits from demand for cheaper goods

In corporate news, Costco Wholesale (NASDAQ:) stock rose in premarket trading after the membership-only retailer posted quarterly sales and profit that beat projections after the close Thursday, helped by demand for cheaper groceries.

Costco has moved to keep prices low in a bid to entice budget-conscious shoppers wary of overspending during a time of elevated inflation and interest rates.

Crude on course for weekly gain

Oil prices edged higher Friday, on course for the first weekly gain in two months, boosted by increased optimism over demand growth next year as well as a weaker dollar.

By 06:30 ET, the futures traded 0.5% higher at $71.90 a barrel, while the contract climbed 0.4% to $76.88 a barrel. 

Both benchmarks are on track for gains of around 1% this week, breaking a run of seven consecutive losing weeks.

The dollar fell to a four-month low on Thursday after the Federal Reserve signaled lower borrowing costs next year, helping confidence that a stronger U.S. economy will boost crude demand in 2024. 

The added to this belief by lifting its oil demand forecast for 2024, citing an improvement in the outlook for U.S. demand and lower oil prices.

A weak dollar also makes dollar-denominated oil cheaper for foreign purchasers.

Additionally, rose 0.5% to $2,055.35/oz, while traded 0.3% lower at 1.0959.

 

 

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!