Dow Jones & Nasdaq 100 Extend Gains Ahead of House Funding Vote

The Kobeissi Letter shared the latest statistics, stating:

“71% of US consumers expect an increase in unemployment over the next 12 months, the highest since the 1980s peak. This percentage has DOUBLED in less than a year and is now above the 2008 peak. Additionally, the perceived probability of job loss among consumers hit 23%, the 2nd-highest in at least 15 years. Such grim labor market sentiment has never been seen outside of a recession.”

A sharply deteriorating labor market and cooling inflation would allow the Fed to cut rates aggressively to bolster the economy. However, US stock futures remain exposed to stagflation risks. The Fed could delay cutting rates if inflation remains elevated, even if the economy shows signs of slowing. While rate cuts could bolster risk appetite, growing stagflation concerns may limit gains.

US Stock Futures: Earnings, Fed Speakers, and Capitol Hill in Focus

Futures extended gains during Wednesday’s Asian session. The Dow Jones E-mini gained 21 points, the Nasdaq 100 E-mini climbed 83 points, while the S&P 500 E-mini rose 10 points.

Later on Wednesday, the House vote on the funding bill to reopen the government will take center stage. US stock futures could retest their October all-time highs if the House passes the funding bill.

Will the House vote spark a risk rally or trigger a pullback?