Dow Jones & Nasdaq 100 Rise as China Profits Jump, Fed Speakers in Focus

Fed Rhetoric in Focus: Can Doves Keep Momentum Alive?

Still, optimism hinges on whether policymakers reinforce these expectations. Fed commentary later in the day could prove pivotal.

Fed Vice-Chair John Williams and FOMC members Beth Hammack, Alberto Musalem, and Christopher Waller are due to speak today.

Support for an October rate cut could lift sentiment, while hawkish rhetoric may weigh on US stock futures.

Global Rate Cuts Underscore Fed’s Late Pivot

The Kobeissi Letter contrasted central bank monetary policy decisions in the last 12 months with previous easing cycles, stating:

“The global pivot: World central banks have cut rates 168 times over the last 12 months, the 3rd highest reading this century. The previous cycle peak was 196 cumulative 12-month rate reductions in June 2020. By comparison, following the 2008 Financial Crisis, global central banks cut rates as many as 249 times in the 12 months ending October 2009.”

Commenting on the Fed’s policy pivot, The Kobeissi Letter added:

“While the US Fed was one of the last to join the rate cut cycle, two more rate cuts are expected by year-end. The Fed is joining the pivot in global monetary policy.”

The impact of the Fed pivot on US stock futures will hinge on the US economy. A US recession could send US stock futures crashing, while a soft landing may fuel the rally.

Key Technical Levels for Dow Jones, Nasdaq 100, and S&P 500

Following the morning gains, US stock futures traded comfortably above the 50-day and 200-day Exponential Moving Averages (EMAs), reaffirming a short-term bullish bias.

However, the near-term outlook hinges on trade developments, Chinese economic data, the Bank of Japan’s policy stance, FOMC members’ speeches, and upcoming US labor market data. Key levels traders are monitoring include:

Dow Jones

• Resistance: The September 23 record high of 47,055.
• Support: 46,500, 46,000, and then the 50-day EMA (45,405).