Dow Jones & Nasdaq 100: US Futures Steady on Fed, Yen Watch
Economists forecast the CB Consumer Confidence Index to fall from 94.2 in September to 93.5 in October. A sharper decline could signal a pullback in consumer spending, dampening demand-driven inflation. A softer inflation outlook would support a more dovish Fed rate path, boosting demand for risk assets.
While a higher reading may test expectations of back-to-back Fed rate cuts, concerns about the labor market will likely keep multiple rate-cut bets alive.
According to the CME FedWatch Tool, the chances of 25-basis-point rate cuts in October and December stand at 97.8% and 92.8%, respectively.
Big Tech Earnings and Fed Press Conference to Collide
Economists are bullish about US stock futures for the rest of the year. FXOpenBroker commented:
“Nasdaq 100 hits a record 25,600! Bullish gap fueled by Fed hopes, US-China trade talks & tech earnings.”
Notably, Alphabet (GOOGL), Meta Platforms (META), and Microsoft (MSFT) will release earnings on Wednesday, October 29, coinciding with the Fed’s interest rate decision and press conference.
Amazon.com (AMZN) and Apple Inc. (AAPL) will release results on Thursday, October 30.
Key Technical Levels for Dow Jones, Nasdaq 100, and S&P 500
Despite the mixed morning, US stock futures continued to trade well above key technical levels, signaling bullish momentum.
The near-term trends will hinge on the Fed, corporate earnings, US data, and President Trump’s meeting with President Xi. Key levels traders should monitor include:
Dow Jones
- Resistance: the October 27 record high of 47,775, then 48,000.
- Support: 47,500, 47,000, the 50-day EMA (46,223).