US stock futures climbed on Friday, with the Dow eyeing a third-straight record high as the prospect of deeper and earlier interest-rate cuts continued to buoy spirits.
Dow Jones Industrial Average (^DJI) futures rose 0.3%, or about 100 points, after the blue-chip index closed at a fresh all-time high Thursday. S&P 500 (^GSPC) futures moved up 0.2%, while those on the tech-heavy Nasdaq 100 (^NDX) were 0.3% higher.
Markets rejoiced after the Federal Reserve’s surprise shift in tone to dovish this week, as it signaled more rate cuts in 2024 and acknowledged its anti-inflation campaign is gaining traction. That has helped drive a record-setting rally in US stocks, and the major indexes have posted six winning sessions in a row.
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
But the ebullient mood may start to fade, as some observers caution that markets could be getting ahead of themselves. And in contrast to the Fed, central banks in Europe discouraged hopes for an easing of policy.
Meanwhile, some $5 trillion in US stock options are set to expire on Friday, 80% in S&P 500-linked contracts. The largest such expiration in at least 20 years could keep a lid on any pullback, some analysts believe.
Elsewhere, oil ticked higher, on track for its first weekly win since October and boosted by a Fed-fueled fall in the dollar. West Texas Intermediate (CL=F) futures traded at almost $72 a barrel, while Brent crude futures (BZ=F) changed hands at about $77 a barrel, after rising more than 4% in the previous two sessions.
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Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
