Investing.com — U.S. stock index futures were steady in Asian trading on Friday as investors maintained hopes of lower interest rates ahead of a Federal Reserve meeting that could herald a larger cycle of monetary easing.
Wall Street stock indexes this week largely ignored strong consumer and producer price readings and were also boosted by a rally in technology stocks fueled by renewed optimism about artificial intelligence.
US stocks also weathered political uncertainty and rose after a heated presidential debate between Donald Trump and Kamala Harris, who analysts see as giving Harris an edge over the Republican candidate.
It was flat at 5,603.25 points and stabilized at 19,444.00 points by 21:58 ET (01:58 GMT), and was up 0.1 percent to 41,177.0 points.
Fed Schedules Rate Cut, Market Split on Decision of 25bps or 50bps
The central bank is widely expected to cut interest rates, but investors are divided on whether the cut should be by 25 or 50 basis points.
Strong inflation data released this week raised expectations of a 25 bps rate cut, while weak labor market data resurfaced expectations of a 50 bps rate cut.
Traders appear to be pricing in a 58% chance of a 25bps cut and a 42% chance of a 50bps cut.
Next week's decision will likely mark the start of an easing cycle for the Fed, with the central bank expected to cut interest rates by at least 100 basis points this year. But investors are now looking for more concrete signs on that front, as Fed officials have hinted at the possibility of a rate cut but have not given clear signals about the size of the planned cut.
Wall Street rises on tech stock gains
Still, the prospect of lower interest rates has kept risk appetite in check, pushing down the dollar and Treasury yields.
Wall Street stock indexes were also buoyed by gains in technology stocks, while strong earnings and outlook from Oracle Corp. (NYSE:) and positive signals about demand from Nvidia Corp. (NASDAQ:) helped rekindle optimism about artificial intelligence.
Technology stocks have been sold off heavily over the past month, but bargain sales have also helped support them.
rose 0.8% to 5,595.8 points, the rose 1% to 17,59.68 points and the rose 0.6% to 41,096.77 points.
Wall Street stock indexes have recovered from sharp declines recorded last week but are still well below the all-time highs hit earlier this year.
