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Stocks - U.S. Futures Rise as Fed’s Bullard Points to Possible Rate Cut

Published 06/04/2019, 06:53 AM
Updated 06/04/2019, 06:53 AM
© Reuters.

Investing.com - U.S. futures rose on Tuesday on hopes that the scale of the recent sell-off could persuade the Federal Reserve to loosen monetary policy.

Dow futures rose 101 points or 0.4% by 6:52 AM ET (10:52 GMT), while tech-heavy Nasdaq 100 futures recovered 31 points or 0.5% and S&P 500 futures was up 11 points or 0.4%.

St. Louis Federal Reserve President James Bullard said Monday that the Fed “needs to tread carefully in order to help sustain the economic expansion” due to global trade risks and weak inflation. He later became the first senior Fed official to say that an interest rate cut could be warranted in the circumstances.

Bullard is one of the Fed’s most dovish officials, but a more authoritative indication of whether the central bank is changing its stance could come at 9:45 AM ET (13:45 GMT), when Chairman Jerome Powell is due to speak at a conference organized by the Chicago Fed. Other Fed members will also speak at the two-day event.

Uber (NYSE:UBER) fell 1.1% in premarket trading, as dozens of analysts that have been gagged by industry practice will be free to speak their mind about the company for the first time since its IPO. The stock has fallen nearly 10% since listing.

Harmony Gold Mining (NYSE:HMY) was down 2.1%, while cloud storage company Box Inc. (NYSE:BOX) slumped 17% after giving a disappointing outlook for revenue.

Elsewhere, technology stocks were higher after their sharp falls on Monday. Facebook (NASDAQ:FB) rose 0.3%, while Tesla (NASDAQ:TSLA) gained 0.9% and Apple (NASDAQ:AAPL) was up 0.7%.

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On the data calendar, factory orders for April are out at 10:00 AM ET (14:00 GMT).

Salesforce (NYSE:CRM), Tiffany (NYSE:TIF) and Cracker Barrel (NASDAQ:CBRL) are among those reporting quarterly numbers

In commodities, crude oil fell 0.9% to $52.80 a barrel, while gold futures gained 0.3% to $1,331.45 a troy ounce. The U.S. dollar index, which measures the greenback against a basket of six major currencies, was flat at 97.055.

Latest comments

No inflation when Fed raised intrest rates. Cut them
Powell isn't going to cut rates any time soon since the economy has full employment and inflation is just slightly below their target.
regulation of the refinancing rate occurs in the interests of preserving the power of the bureaucracy
Now that the negative spin has scared all the nervous money out, its time to put out some pump media and get it all back in plus some new money lying around.. . Time to once again manipulate those emotions and earn some commissions.
I'm of the opinion that we sold off this past month to spark the rate cut. Wall Street loves free money!!!
 ??? rate down mean buy
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