Dow, S&P 500, Nasdaq futures inch higher, eye returns to Trump rally

On By Littum

U.S. stock futures rose on Thursday, seeing a return to the Trump rally, as investors mapped the next president’s likely impact on markets and awaited the Federal Reserve’s policy decision.

Dow Jones Industrial Average futures (YM=F) rose 0.2% on the heels of a 1,500-point gain that marked the blue-chip gauge’s best day since 2022. S&P 500 futures (ES=F) rose about 0, 3%, while contracts on the technology-heavy Nasdaq 100 (NQ=F) rose 0.4%.

Spirits still appear buoyant following Donald Trump’s presidential election victory, which sent all three major stock gauges soaring to new record highs on Wednesday. His plans for corporate tax cuts and deregulation have fueled optimism for a boost to the economy that will boost stocks.

But some on Wall Street see signs of an emergency rally, given Trump’s decisive victory also raised concerns about a contested vote. They suggest that stock gains may slow as the euphoria wears off.

The Fed’s interest rate decision later Thursday — typically a dominating event for markets — takes somewhat of a back seat amid the election.

First, investors see a 25 basis point rate cut as a pretty sure thing at the end of policymakers’ two-day meeting. Instead, the focus is on what Chairman Jerome Powell could reveal about the path of future policy, especially as Trump’s returns could mean interest rates stay higher for longer.

On the corporate front, Arm Holdings ( ARM ) shares retreated 6% in premarket trading as the chip designer’s revenue forecast disappointed Wall Street’s hopes for stronger, AI-driven growth. In contrast, shares of peer Qualcomm ( QCOM ) rose 6% after its sales and profit outlook beat estimates.

Quarterly results from Warner Bros. Discovery (WBD), Hershey (HSY) and Moderna (MRNA) are highlights on Thursday’s earnings document.

Meanwhile, Trump Media & Technology Group ( DJT ) stock continued to pull back from the big rally that followed the election results. Shares in the company — home of Trump’s social media platform, Truth Social — fell more than 14% early Thursday.

LIVE 3 updates

  • Ines Ferré

    DJT stock declines, reversing election-driven gains

    Trump Media & Technology Group ( DJT ) shares sank double digits in premarket trading on Thursday, reversing the gains it enjoyed on Wednesday as Donald Trump edged Kamala Harris in the presidential election.

    As Yahoo Finance’s Allie Canal reports, shares of the company — home of Trump’s social media platform, Truth Social — have been on a wild ride over the past week, with the up-and-down moves largely tied to Trump’s chances of re-election The White House.

    The stock is down about 10% over the past five days, although shares are up nearly 120% in the past month.

    Read more here.

  • Ines Ferré

    Weekly initial jobless claims rise to 221,000

    Initial jobless claims rose to 221,000 last week, up 3,000 from the previous week’s revised level, according to data released by the US Labor Department on Thursday morning.

    The previous week’s level was revised up by 2,000 from 216,000 to 218,000.

    Meanwhile, continuing claims came in at 1,892,000, up 39,000 from the previous week’s revised level.

  • Jenny McCall

    Good morning. Here’s what’s happening today.

    Here’s a look at the big economic and market themes happening today as Wall Street adjusts to Donald Trump’s impending return to the White House. The Federal Reserve is expected to cut interest rates by 25 basis points today in order to maintain stability and avoid surprises after Trump’s election victory.

    Financial data: Bold interest rate decision; Initial Jobless Claims (Week Ending November 2)

    Earnings: Affirm (AFRM), Airbnb (ABNB), Block (SQ), Datadog (DDOG), DraftKings (DKNG), Halliburton (HAL), Hershey (HSY), Moderna (MRNA), Pinterest (PINS), Rivian (RIVN), Trade Desk (TTD)

    Here are some of the biggest stories you may have missed overnight and early this morning:

    The Fed is likely to cut interest rates as Powell seeks stability after Trump’s victory

    US bond yield rises send warning to ‘king of debt’ Trump

    How Elon Musk’s latest government bet paid off

    YF columnist Rick Newman: Americans want to return to a place that no longer exists

    DJT short sellers hit with $420m loss

    How Elon Musk’s latest government bet paid off

    Moderna stock rises on surprise COVID vaccine profit

    The Bank of England lowers the interest rate to 4.75 per cent.