U.S. stock index futures remained stable in Wednesday evening trading following a record-breaking surge on Wall Street. The rally was sparked by Donald Trump’s 2024 presidential election victory, with investors now turning their attention to the Federal Reserve’s anticipated decision on interest rates.
The Federal Reserve is expected to announce a rate cut on Thursday, though its guidance on future rate moves remains uncertain, adding some tension for market watchers.
Wall Street hit new highs on Wednesday, as investors welcomed the possibility of lower corporate taxes and potential Republican led policy changes following Trump’s win. The prospect of a Republican majority in Congress further boosted investor sentiment, suggesting a clearer path for implementing Trump’s proposed policies.
Adding to the optimism, the market was also lifted by better than expected PMI data.
As of 6:31 p.m. ET (11:31 p.m. GMT), S&P 500 Futures held steady at 5,690.0 points, while Nasdaq 100 Futures ticked up 0.1% to 20,909.75 points. Dow Jones Futures also rose slightly by 0.1% to 43,923.0 points.
Wall Street Reaches New Highs on Trump’s Victory
Major Wall Street indexes surged on Wednesday after news networks confirmed Trump’s re-election win. Trump maintained a consistent lead over Kamala Harris during vote counting, boosting investor confidence.
The Republicans also secured a majority in the Senate and maintained a narrow majority in the House of Representatives, paving the way for a “red sweep.” This scenario could allow Trump to advance significant policy reforms more easily.
Trump’s policies, which lean toward protectionism in areas like immigration and trade, are expected to be inflationary. This outlook drove up both the dollar and Treasury yields, though these gains had little impact on Wall Street’s rally.
The S&P 500 climbed 2.5% to a record high of 5,929.04 points, while the NASDAQ Composite rose 2.9% to a peak of 18,978.65 points. The Dow Jones Industrial Average surged 3.6% to 43,729.93 points, marking its best single day gain since 2022.
Investor sentiment was further boosted by strong earnings from major chipmakers. GlobalFoundries Inc. (NASDAQ) and Qualcomm Incorporated (NASDAQ) both exceeded earnings expectations. Qualcomm surged nearly 7% in after hours trading, and GlobalFoundries rose 0.5%, with reports indicating it could receive support through the CHIPS Act.
Fed Rate Decision Anticipated Amid Mixed Economic Signals
Wall Street’s gains seemed to level off ahead of the Federal Reserve’s meeting, where a 25 basis point rate cut is widely anticipated. However, the Fed’s outlook for future rate decisions remains uncertain, especially as inflation shows persistent strength.
With Trump back in office for a second term, investor expectations for long-term rate reductions appear to have tempered.
