Investing.com– U.S. stock index futures moved little on Wednesday evening, steadying after a record-high session on Wall Street amid persistent gains in the technology sector.
Investors were also encouraged by Federal Reserve Chair Jerome Powell flagging strength in the U.S. economy, which spurred flows into more economically sensitive sectors.
S&P 500 Futures fell slightly to 6,095.50 points, while Nasdaq 100 Futures fell 0.1% to 21,515.50 points by 18:53 ET (23:53 GMT). Dow Jones Futures steadied at 45,099.0 points.
Powell flags strength in the economy; Payrolls awaited
Powell said the economy was in a better place than as it appeared in September when the Fed began cutting interest rates, allowing the Fed to be more cautious in considering further easing.
Speaking at a New York Times (NYSE:NYT) event, Powell also flagged progress towards bringing down inflation, although his comments likely indicated support for a slower pace of rate cuts.
His comments are likely his last public statements before the Fed meets on December 17 and 18, where the central bank is widely expected to cut interest rates by 25 basis points.
But markets are uncertain over the longer term outlook, especially given that resilience in the U.S. economy could keep inflation sticky. President-elect Donald Trump’s protectionist trade policies are also expected to underpin inflation in the long term.
Still, investors latched on to the prospect of a stronger economy, sparking broad-based gains across Wall Street. Investors were also relieved by Powell not downplaying the prospect of a December cut.
Focus is now on upcoming nonfarm payrolls data for November, due on Friday. The reading is expected to show resilience in the labor market and is likely to factor into the outlook for U.S. interest rates.
Tech gains put Wall St at record highs
Wall Street indexes finished at record highs on Wednesday amid a persistent rally in major technology stocks. Positive earnings from Salesforce Inc (NYSE:CRM)- which surged 11%- were a key driver of gains, as was a sustained rally in market darling NVIDIA Corporation (NASDAQ:NVDA).
The S&P 500 rose 0.6% to a record high of 6,086.49 points, while the NASDAQ Composite rose 1.3% to a peak of 19,732.87 points. The Dow Jones Industrial Average ended up 0.7% at a record high of 45,014.04 points.
Wall Street has been on a tear since Trump’s election victory in early-November, with analysts expecting more gains as 2024 draws to a close.