Reporters reported The Dow Jones Industrial Average futures jumped more than 400 points, indicating Wall Street stocks will continue to gain from yesterday.
At 19:19 Thai time, the Dow futures index gained 422 points, or 1.43%, to 29,958 points.
The Dow jumped more than 700 points yesterday as investors eased concerns about the acceleration of the Federal Reserve’s interest rate hike after the US released weak economic data. Today’s trade should continue to be supported by the depreciation of the dollar. After investors were worried before The appreciation of the dollar will affect the profits of listed companies with foreign income.
In addition, the market also received positive factors from falling US government bond yields. The 10-year US Treasury Bond is a reference to the price of corporate bonds around the world. This includes the US mortgage interest rate. If government bond yields have risen it will mean that consumers have less money to spend
while the cost of repaying mortgages increases AND companies will face higher costs for repaying debt. forcing the company to cut investments and reduce dividend payments to investors
Meanwhile, investors cut expectations that the Fed will raise interest rates by 0.75% during November’s monetary policy meeting. after the release of weak economic numbers
CME Group’s FedWatch tool indicates investors weigh 58.5% and the Fed will raise interest rates by 0.75% to 3.75-4.00% at its meeting on 1-2 November , after having previously overweighted them by up to 68.1%.
Investors also raised their weight to 41.5% on expectations that the Fed would raise interest rates by 0.50% at the meeting.
Investors eased concerns about the Fed’s accelerating interest rate hikes. After the US revealed the manufacturing index was the lowest in more than two years.
The Institute for Supply Management (ISM) said its manufacturing index fell to 50.9 in September, the lowest level in more than two years since May 2020. It was lower than analysts’ forecast of 52.3 from 52 , 8 of August.
The manufacturing index was affected by the contraction in new orders. This was the third contraction this year, while employment contracted for the fourth time.
