Dow Jones futures tilted higher Wednesday night, along with S&P 500 futures and Nasdaq futures. The stock market rally rebounded Wednesday, boosted by Evergrande debt news and a Fed meeting that walked a line between hawkish and dovish statements and hints.
Snap stock extended Tuesday’s move above a trend line entry. Snap (SNAP) is rallying as FB stock loses sight of its 50-day line, with Facebook (FB) warning that Apple (AAPL) iOS ad-tracking changes remain a headwind.
Meanwhile, Nvidia (NVDA), Wells Fargo (WFC), Monolithic Power (MPWR) and Digital Turbine (APPS) also flashed buy signals.
Accenture stock is trying to rebound from its 10-week line for the first time since a late June breakout. Accenture (ACN) reports earnings before Thursday’s open.
Fed Meeting
Policymakers said in the post-Fed meeting statement that “a moderation in the pace of asset purchases may soon be warranted,” but didn’t go ahead with a bond taper decision at the current meeting.
The Fed statement didn’t provide any specific timing for a taper, but Fed chief Jerome Powell said a November taper decision could “easily” happen if the economy continues to show improvement. In his post-meeting news conference, Powell said several FOMC members were already ready to taper. He added that a taper could end by mid-2022, though he said the Fed could speed up or slow down the taper as conditions warrant.
But the end of the bond taper would set the stage for Fed rate hikes. Policymakers are now evenly split on whether they expect a Fed rate hike next year vs. seven of 18 in the prior meeting. There had been speculation that a majority would target a 2022 Fed rate hike.
Policymakers also now expect inflation to remain above 2% through 2024.
Nvidia stock and Snap are on IBD Leaderboard. Snap stock is on SwingTrader. MPWR stock is on IBD Long-Term Leaders. Snap stock, Nvidia and Monolithic Power are on the IBD 50.
Dow Jones Futures Today
Dow Jones futures rose 0.1% vs. fair value. S&P 500 futures edged higher and Nasdaq 100 futures climbed 0.1%.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
The stock market rally had a strong session Wednesday. The major indexes opened higher, buoyed by a key Evergrande unit pledging to make a key interest payment on domestic debt on Thursday. Stocks kept building momentum into the afternoon, after the Fed meeting announcement.
Stocks pared gains somewhat as Fed chief Powell discussed a November bond taper but firmed up somewhat for a strong close.
The Dow Jones Industrial Average rose 1% in Wednesday’s stock market trading. The S&P 500 index climbed almost 1%. The Nasdaq composite advanced 1%. The small-cap Russell 2000 ended 1.55% higher.
Facebook stock fell 4% to 343.21, a two-month low. Shares have now fallen 5.9% so far this week….
Read More: Dow Jones Futures: Market Rallies As Fed Meeting Walks This Line; 5