The stock market appears poised to surge early Friday, continuing from where it left off in the previous session. Recent forecasts indicate increased positivity for the outcomes with the S&P 500 futures already experiencing a 0.3 percent boost.
This market buoyancy is believed to be anchored on the renewed optimism concerning interest rates, a factor that has seen the Dow enjoying a seven-day victory streak.
Indications of slight instability in the U.S. labor market have emboldened investors' belief that the Federal Reserve would cut down interest rates in the forthcoming months. Though it's highly probable the Fed will maintain the interest rates in June, there is a whopping 85.4 percent chance that by September the rates will be slashed, as per the FedWatch Tool by CME Group.
However, the market might slow down ahead of the rollout of the initial consumer sentiment status for May from the University of Michigan. Predicted to decrease slightly to 76.0 from 77.2 in April, the main focus for traders may shift to the inflation expectations details.
Several businesses are drawing attention as well. Among them, Novavax (NVAX), whose shares are soaring after an exclusive licensing agreement with Sanofi (SNY). This agreement includes a dual exclusive permit for global commercialization of Novavax's standalone adjuvanted Covid-19 vaccine and a unique license to use Novavax's adjuvanted Covid-19 vaccine in concert with Sanofi's flu vaccines.
Array Technologies (ARRY), a solar energy company, is enjoying substantial pre-market strength after announcing an unexpected profit for the first quarter influenced by higher than expected revenue.
On the flip side, Akamai Technologies' (AKAM) shares might be negatively affected by the disappointing guidance for the second quarter delivered by the cloud company.
On Thursday, the stock market recorded an upward movement despite falling flat in the previous two sessions. The Dow extended its unbeaten run to seven days, scoring its best closing tally in over a month. The Dow leaped 331.37 points or 0.9 percent to 39,387.76, the S&P 500 ascended 26.41 points or 0.5 percent to 5,214.08, and the Nasdaq heightened 43.51 points or 0.3 percent to 16,346.26.
On Friday, in the Asia-Pacific region, most markets made gains, with Japan's Nikkei 225 Index growing by 0.4 percent, and Hong Kong's Hang Seng Index soaring by 2.3 percent.
Major European markets are similarly depicting a positive trend, with the UK's FTSE 100 Index, French CAC 40 Index, and German DAX Index all rising by 0.8 percent and 0.7 percent, respectively.
In commodities, crude oil futures increased by $0.40 to $79.66 a barrel after an ascent of $0.27 to $79.26 a barrel on Thursday. Concurrently, gold futures jumped by $18 to $2,340.30 an ounce during the last session and are rapidly climbing to $2,374.60 an ounce.
Concerning currencies, the U.S. dollar is trading at 155.82 yen against the 155.48 yen it had at the close of Thursday's New York trading. The dollar is currently valued at $1.0771 against the euro, a decrease from $1.0782 the previous day.
