Stock market today: Dow futures slip with stocks in retreat as investors rethink rate-cut bets

Published On Oct 7, 2024, 7:08 AM

US stock futures fell as investors reassess expectations around interest rate cuts following a strong jobs report. Dow futures were down 0.4%, and S&P 500 and Nasdaq futures also experienced declines. There is now a heightened expectation for a 0.25% rate cut by the Federal Reserve instead of a more substantial cut, which has raised concerns among investors. The upcoming consumer inflation report and the start of earnings season are also set to influence market movements.

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Stock Forecasts

JPMView JPM chart on TradingView

Negative

The anticipated change in Federal Reserve's interest rate policy is likely to create volatility in the stock market, particularly for growth-oriented stocks that thrive on lower rates. The focus will shift to inflation data and bank earnings, which might show mixed results amid changing economic conditions.

WFCView WFC chart on TradingView

Negative

Given the potential for lower consumer spending and tighter financial conditions, this could negatively impact bank stocks like JPMorgan. If the inflation report shows continued pressure, equities could face further downward adjustments as rate hike expectations firm up.

BLKView BLK chart on TradingView

Negative

With steady job growth but mixed economic signals, large financial institutions like BlackRock may face challenges in sustaining last quarter's high performance amid investor uncertainties.

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