U.S. stock futures posted modest gains early Friday as investors looked to extend the postelection rally, which has seen the S&P 500 and Nasdaq Composite reach record highs. The market’s attention is now on the Federal Reserve’s recent interest rate cut and its potential impact on future economic conditions.
Futures tied to the S&P 500 and Dow Jones Industrial Average each added less than 0.1%, while Nasdaq 100 futures rose by 0.14%.
On Thursday, the broad market S&P 500 surged 0.7% to close at a new all-time high, continuing the momentum from earlier in the week. The Nasdaq Composite jumped 1.5%, crossing the 19,000 mark for the first time. In contrast, the Dow, which includes 30 large industrial companies, finished slightly lower, although all three major indexes reached intraday record highs during the session.
These gains follow the postelection rally, which was fueled by President-elect Donald Trump’s victory, propelling the Dow and S&P 500 to their best days since November 2022.
Meanwhile, the Federal Reserve lowered interest rates by 0.25%, in line with market expectations. Fed Chair Jerome Powell expressed optimism about the economy, saying he was “feeling good” during a press conference. However, Scott Helfstein, head of investment strategy at Global X ETFs, noted that “the path of Fed cuts is cloudier today than it was a week ago before the election,” signaling uncertainty about future rate decisions.
Investors typically view a Republican-controlled government as favorable for markets, with expectations of deregulation, potential mergers and acquisitions, and tax cuts. However, concerns over a growing federal deficit and the possibility of higher tariffs have raised inflation worries. Helfstein explained, “The market is signaling that a Trump administration would be good for growth and risk assets, but the combination of faster growth with new tariffs could be inflationary.”
The postelection rally has put all three major indexes on track for strong weekly gains. The S&P 500 is up approximately 4.3%, while the Dow has gained nearly 4%. Both indexes are on pace for their best week since November 2023. The Nasdaq is leading the charge with a 5.6% advance through Thursday’s close.
