How are stock index futures traded?:
S&P 500 futures rise 0.1%
The Dow Jones Industrial Average futures rose 0.1%.
Nasdaq 100 futures rise 0.3%.
On Thursday, The Dow Jones Industrial Average rose 555 basis points, or 1.39%, to 40,563, while the S&P 500 gained 88 basis points, or 1.6%, to 5,543 and the Nasdaq Composite rose 402 basis points, or 2.3%, to 17,595.
Futures suggest the recent rally will continue as new economic data allays fears that the U.S. economy is heading for a hard landing. The upbeat figures signaled that the U.S. will avoid a recession ahead of an expected Federal Reserve rate cut next month.
The S&P 500 responded by extending its rally that has rebounded the index from the slump caused by the unwinding of the carry trade in early August. During this rally, the S&P 500 has gained nearly 7% from its recent low on August 5.
US retail data also came in better than expected in July. A separate report showed that initial jobless claims also fell for the second week in a row. These figures have eased investor fears of a possible recession.
Investors are now preparing for what Federal Reserve Chairman Jerome Powell will say in his speech at the upcoming Jackson Hole Economic Symposium next week.
“We believe quality growth stocks are well positioned given stronger-than-expected retail sales and a robust labor market,” UBS analysts led by Mark Haefele said in a note.
