U.S. Stock Index Futures Steady After Trump's Election Victory

U.S. stock index futures steadied in evening deals on Wednesday after Wall Street surged to record highs following Donald Trump winning the 2024 presidential election, with focus now shifting to the Federal Reserve.

The central bank is widely expected to cut interest rates on Thursday. However, its outlook on the future path of interest rates remains uncertain for investors.

Futures steadied after Wall Street rallied to record highs as investors cheered the prospect of lower corporate taxes under Trump, while the potential for a Republican sweep in Congress presents a clear path for significant policy changes.

Sentiment was also bolstered by stronger-than-expected PMI data.

• S&P 500 Futures: steady at 5,690.0 points
• Nasdaq 100 Futures: rose 0.1% to 20,909.75 points
• Dow Jones Futures: rose 0.1% to 43,923.0 points

Wall St Scales Record High on Trump Victory

Wall Street indexes surged on Wednesday after several networks declared Trump the winner of the 2024 presidential election. The former president held a clear lead over Kamala Harris as votes were counted.

The Republicans won a majority in the Senate and held a narrow majority in the House of Representatives, with the prospect of a “red sweep” paving the way for Trump to enact sweeping policy changes.

Trump is expected to implement more inflationary policies, given his largely protectionist stance on immigration and trade. This notion led to a sharp rise in the dollar and Treasury yields, yet it had little effect on Wall Street's enthusiasm.

• S&P 500: jumped 2.5% to record high of 5,929.04 points
• NASDAQ Composite: rose 2.9% to 18,978.65 points
• Dow Jones Industrial Average: surged 3.6% to 43,729.93 points, marking its best day since 2022.

Some positive earnings from chipmakers also lifted sentiment; GlobalFoundries Inc (NASDAQ:GFS) and Qualcomm Incorporated (NASDAQ:QCOM) reported better-than-expected results. Qualcomm gained nearly 7% in aftermarket trading, while GlobalFoundries rose 0.5%, with reports indicating potential government support from the CHIPS Act.

Fed Awaits More Cues on Interest Rates

Gains on Wall Street cooled ahead of the conclusion of a Fed meeting on Thursday, where a 25-basis-point interest rate cut is widely anticipated.

However, the bank's outlook on interest rates is uncertain, particularly as recent data indicates persistent inflation.

Investors are lowering long-term expectations for rate cuts, especially following Trump's second-term victory.