(Reuters) – Futures tracking the S&P 500 (ES=F) traded above the 6,000 mark on Friday, with stock markets bracing for an upbeat end to an eventful week that saw Donald Trump reclaim the US presidency and the presidential election. The Federal Reserve lowered interest rates.
Futures for all three major indexes were little changed in early trading after S&P 500 futures surpassed that milestone for the first time on Thursday.
“I can’t say there was a particular catalyst for the move, which seemed more like a continuation of the initial stock gains after the election than anything else,” said Michael Brown, chief research strategist at Pepperstone.
The Dow Jones Composite Index rose 0.05%, the S&P 500 rose 0.09%, and the Nasdaq 100 rose 0.06%.
The Federal Reserve cut interest rates by 25 basis points on Thursday, which was expected. At the meeting, Bank Chairman Jerome Powell said that the outcome of Tuesday’s presidential election would have no “near-term” impact on monetary policy.
Stocks rose this week following Trump’s decisive election victory, with markets anticipating proposed tax cuts and an easier regulatory regime to lift corporate profits and boost stocks.
“Strong earnings and economic growth, coupled with aggressive Fed policy, are set to continue to push the market higher over the medium term,” Brown said.
However, Trump’s expansionary fiscal spending plans and proposed tariff hikes could send inflation higher, complicating the path for the Fed to ease policy. Traders trimmed their expectations for interest rate cuts next year, and bond yields jumped to multi-month highs.
However, the immediate impact on Wall Street was weak. All three major indexes closed around record levels on Thursday.
The Dow Jones and S&P 500 are poised to have their best week in nearly a year, while the Nasdaq is on track for its best performance in two months.
Investors were also eyeing the possibility of a “red sweep” that would make it easier for Trump to enact his legislative plans, with Republicans poised to maintain their narrow majority in the House of Representatives after winning control of the US Senate.
They will also be closely monitoring data from the University of Michigan Preliminary Consumer Confidence Survey for November, which is due later in the day, and Federal Reserve Governor Michael Bowman’s speech.
(Reporting by Lisa Mattakal in Bengaluru; Editing by Shinjini Ganguly)
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