In a positive start to the day, Dow Jones futures, along with S&P 500 futures and Nasdaq futures, rose early Thursday following a market reaction to the steady Fed rate-cut outlook. Micron Technology (MU) saw a surge in earnings overnight, with a Microsoft AI event scheduled for Thursday. The stock market rally on Wednesday saw solid gains, particularly in the afternoon, as Federal Reserve policymakers indicated their intention to maintain three rate cuts in 2024. Fed Chief Jerome Powell emphasized the need to start easing “at some point this year.” The Nasdaq and small caps led the charge, with the S&P 500 and Dow Jones hitting record highs. Various companies, including Arista Networks (ANET), DraftKings (DKNG), PVH Corp. (PVH), JFrog (FROG), and Royal Caribbean (RCL) flashed buy signals. As the market continued to show strength on Thursday, Dow Jones futures were slightly above fair value, with Apple stock causing a slight drag. The S&P 500 futures rose, while Nasdaq 100 futures climbed, suggesting a potential record high for the Nasdaq composite. Micron stock and Broadcom are key components of the S&P 500 and Nasdaq 100. The 10-year Treasury yield saw a slight decrease, while the Swiss National Bank cut rates unexpectedly. Micron reported a surprise profit in the fiscal second quarter, leading to a significant rise in its stock early Thursday. The Fed maintained its stance on rate cuts, with Powell highlighting progress in fighting inflation. The stock market rally gained momentum on Wednesday, with major indexes reaching all-time highs. However, caution is advised as the market may face extended levels, potentially leading to a pause or pullback. Despite these risks, opportunities for investors to add exposure remain present. The market outlook remains positive, with various leading stocks flashing buy signals and major indexes at or near highs. Investors are advised to proceed cautiously and look for potential opportunities incrementally.
