Stock Market News: Dow Set to Open Up as South Korea Fears Fade
U.S. stock futures were pointing to gains early Wednesday. Political tumult in South Korea appeared to be largely contained, with traders set to focus instead on the prospects for further rate cuts from the Federal Reserve.
Dow Jones Industrial Average futures were up 133 points, or 0.3%. S&P 500 futures gained 0.2% and Nasdaq 100 futures were rising 0.4%. The S&P and Nasdaq Composite both hit new highs on Tuesday.
Elsewhere, South Korea’s KOSPI Composite Index fell 1.4% as traders continued to digest political instability in the country.
President Yoon Suk Yeol declared martial law late Tuesday night, claiming that political opponents had made the country vulnerable to North Korea, but was forced to swiftly reverse his actions as lawmakers voted down the measure early on Wednesday morning. Opposition politicians are now calling for his impeachment.
“If US exceptionalism and the potential for a second Trump administration weren’t enough to hold dollars, geopolitics and events in South Korea yesterday only add to the argument. Expect the market to keep one eye on Korea today, but also take note of central bank speakers and US data,” wrote ING analyst Chris Turner in a research note.
The yield on the benchmark 10-year Treasury note stood at 4.247% early on Wednesday, ticking up from the previous day. Federal Reserve Chair Jerome Powell will speak in a moderated New York Times discussion later in the day, which will be eagerly watched for any clues as to the Fed’s attitude to rate cuts ahead of jobs data on Friday.