Stock futures remained relatively unchanged on Wednesday night following a significant market rally triggered by Donald Trump’s decisive win in the presidential election. Investors are now focused on the Federal Reserve’s upcoming interest rate decision, scheduled for Thursday afternoon.
Futures related to the Dow Jones Industrial Average saw a slight decrease of 12 points, a dip of less than 0.1%. Both S&P 500 futures and Nasdaq 100 futures showed minor declines as well. In the aftermath of Trump’s victory, the Dow experienced a remarkable surge, increasing by over 1,500 points, while the S&P 500 and Nasdaq Composite reached new all-time highs. The small-cap Russell 2000 also rose by more than 5%.
In addition to stock gains, Bitcoin, the U.S. dollar, and bank stocks enjoyed a boost following the election results. However, some international funds and solar stocks faced challenges amid concerns that the new president’s policies might negatively impact these sectors.
Scott Helfstein, head of investment strategy at Global X ETFs, commented on the market’s reaction, stating, “The results are in and the financial markets can breathe a little easier without concern over a prolonged election process.” He cautioned investors to remain vigilant regarding geopolitical events, as these can lead to significant fluctuations in asset prices, although fundamentals typically prevail over time.
Market participants will be closely watching the Federal Reserve’s interest rate decision and Chair Jerome Powell’s press conference. Currently, CME Group’s Fed Watch tool indicates a 100% probability of a rate cut, which would be the second consecutive decrease following the Fed’s decision in September—the first reduction since 2020. Prior to the announcement, traders will keep an eye on economic data, including jobless claims and wholesale inventories.
Additionally, quarterly earnings reports for Moderna and Warner Bros. Discovery are expected before the market opens on Thursday, while results for Block, Pinterest, and Rivian are scheduled for later in the day.
Overall, the post-election market rally highlights a renewed investor confidence and optimism about potential economic policies under the new administration. As the market navigates through this transition, investors remain hopeful that positive fundamentals will guide growth.