⚡ Dow Jones futures climb as cooling economic data lower Fed rate hike odds

Dow Jones futures climbed over 53,300 in Friday’s European session, gaining 0.24 percent as traders responded to softer economic data that reduced expectations for aggressive Federal Reserve rate hikes. S&P 500 futures advanced 0.46 percent to approach 7,560, while tech-heavy Nasdaq 100 futures led the rally with a 1.0 percent surge toward 29,850.

The cooling economic indicators suggest inflationary pressures may be easing, prompting investors to reassess the Fed’s likely policy trajectory. Traders and brokers are repositioning portfolios based on reduced rate hike odds, with growth stocks and tech equities showing particular strength in pre-market activity. The Nasdaq’s outperformance reflects renewed appetite for risk assets that typically benefit from lower borrowing costs.

All major U.S. equity index futures are pointing to a positive open, with market participants closely monitoring upcoming Fed communications for confirmation of the dovish shift.

FXnCO Insight

Tech-focused positions and growth equity exposure should outperform defensive sectors if the dovish repricing continues through the session.

Source: FXStreet