Stock Futures Surge as Investors Eye Fed Interest Rate Cuts
US stock futures rallied on Monday, extending the prior session’s strong gains, fueled by renewed optimism about the Federal Reserve potentially lowering interest rates.
Employment Data Revives Rate Cut Hopes
Positive employment data released on Friday sparked a surge in equity markets. The report revealed that the U.S. economy created fewer jobs in April than anticipated, easing concerns of an overheating economy. As a result, traders speculate that the Fed may begin cutting rates sooner than previously expected.
“The April job report provides a clear path toward a soft landing for the U.S. economy, despite the Fed maintaining restrictive interest rates,” commented Bill Adams, chief economist at Comerica Bank.
Earnings Season Continues
While the first-quarter earnings season is nearing its end, investors remain focused on select companies scheduled to report this week.
Disney and Uber in the Limelight
On Tuesday, entertainment giant Disney is expected to release its earnings. The company’s streaming services, Disney+, Hulu, and ESPN+, have become increasingly popular, driving investor interest.
On Wednesday, ride-hailing leader Uber will publish its quarterly report. Analysts closely observe the company’s growth and profitability metrics amid heightened competition in the industry.
Despite some earnings misses, Emmanuel Cau of Barclays highlighted the overall resilience of companies during the first quarter.
