Reporters reported that Dow Jones Industrial Average futures jumped more than 400 points, indicating Wall Street stocks will continue their gains from yesterday.
As of 7:19 p.m. Thai time, the Dow futures index gained 422 points, or 1.43%, to 29,958 points.
The Dow jumped more than 700 points yesterday as investors eased concerns regarding the Federal Reserve’s accelerating interest rate hikes following the US released weak economic data. Today’s trading is expected to continue to be supported by the dollar’s depreciation. After investors were worried earlier that The appreciation of the dollar will affect the profits of listed companies with foreign income.
In addition, the market also received positive factors from the decline in US government bond yields. The 10-year U.S. Treasury Bond is a reference to the price of corporate bonds worldwide. This includes the US mortgage interest rate. If government bond yields rose will make consumers have less money for spending
while the cost of paying off mortgage loans increases And companies will face higher costs of debt settlement. causing the company to reduce investment and reduce dividend payments to investors
Meanwhile, investors cut expectations that the Fed will raise interest rates by 0.75% at its monetary policy meeting in November. following the release of weak economic numbers
The CME Group’s FedWatch Tool indicates that investors are weighing 58.5% that the Fed will raise interest rates by 0.75% to 3.75-4.00% at its Nov. 1-2 meeting, following previously overweighting it. up to 68.1%
Investors also raised their weight to 41.5% on expectations the Fed would raise interest rates by 0.50% at the meeting.
Investors have eased concerns regarding the Fed’s accelerating interest rate hikes. After the United States revealed the manufacturing index was the lowest in more than two years.
The Institute for Supply Management (ISM) said its manufacturing index fell to 50.9 in September, the lowest level in more than two years since May 2020. It was lower than analysts’ forecast of 52.3 from 52.8 in August.
The manufacturing index was affected by the contraction of new orders. This was the third contraction this year, while employment contracted for the fourth time.
