In the wake of significant gains over the last two trading sessions, stocks are poised for additional growth in early dealings on Thursday. Indications from the major index futures suggest a positive start on Wall Street, with S&P 500 futures rising by 0.2 percent.
Investors may continue to ride the wave of optimism concerning the potential impacts of a second term for Donald Trump on the financial markets and the broader U.S. economy.
That said, overall trading volume is expected to remain somewhat restrained as market participants await the Federal Reserve's monetary policy statement, scheduled for release this afternoon.
The Federal Reserve is largely anticipated to announce a rate cut of 25 basis points. Consequently, traders will be eager to dissect the accompanying statement for insights into potential future rate reductions.
Ahead of the decision, the CME Group's FedWatch tool reflects a 67.4 percent probability that the Fed will enact another 25 basis point rate cut in December, with a 32.2 percent chance of rates remaining steady.
On the economic data front, the U.S. Labor Department has reported a slight increase in initial claims for unemployment benefits for the week ending November 2nd.
The Labor Department indicated that initial jobless claims rose modestly to 221,000, up 3,000 from the prior week's adjusted figure of 218,000. Economists had predicted claims would rise to 221,000 from the initially reported 216,000 for the previous week.
This rise follows a week during which jobless claims hit their lowest since reaching 216,000 for the week ending May 18th.
Additionally, the Labor Department released another report revealing that labor productivity increased by slightly less than expected in the third quarter, whereas unit labor costs significantly exceeded projections.
On Wednesday, stocks soared as traders celebrated Donald Trump's presidential election victory. The major indices built upon the significant gains registered during Tuesday's session, achieving new record closing heights.
The major indices witnessed further gains towards the end of trading, setting new session highs. The Dow skyrocketed by 1,508.05 points or 3.6 percent to close at 43,729.93, the Nasdaq soared 544.29 points or 3.0 percent to 18,983.47, and the S&P 500 increased by 146.28 points or 2.5 percent to 5,929.04.
In international markets, trading across the Asia-Pacific region showed mixed results on Thursday. Japan's Nikkei 225 Index decreased by 0.3 percent, while Hong Kong's Hang Seng Index and China's Shanghai Composite Index surged by 2.0 percent and 2.6 percent, respectively.
European stocks have generally trended higher on the day: the German DAX Index has climbed by 1.5 percent, the French CAC 40 Index by 0.6 percent, with the UK's FTSE 100 Index slightly above the flat line.
In the commodities market, crude oil futures are declining by $0.22 to $71.47 per barrel after a $0.30 drop to $71.69 per barrel on Wednesday. Meanwhile, after a significant $73.40 dip to $2,676.30 per ounce in the previous session, gold futures are recovering $14.10, reaching $2,690.40 per ounce.
On the currency exchange, the U.S. dollar is currently trading at 153.63 yen, down from the 154.63 yen at Wednesday’s New York session close. Against the euro, the dollar is valued at $1.0784, rising from the previous day's $1.0729.
