Stock Futures Surge on Fed Rate Expectations and Positive Tech News - 11 September 2023

S&P 500 futures saw a 0.4% increase, and Nasdaq 100 futures experienced a 0.7% rally as the week's trading began. This uptick in stock futures was driven by the anticipation that the Federal Reserve would maintain its current interest rates, given the ongoing deceleration in inflation.

According to a report in The Wall Street Journal published on Sunday, there is a consensus among Fed members to refrain from raising rates during the central bank's upcoming meeting. Early Monday, Fed futures trading indicated a 93% likelihood that the Fed would keep rates steady on September 20, as per the CME FedWatch tool. However, it remains uncertain whether the Fed will implement further rate hikes this year, as reported by the WSJ.

Ahead of the market opening, Tesla's shares gained 6% following an optimistic assessment from Morgan Stanley, which upgraded the stock and predicted a substantial upcoming rally due to advancements in its autonomous software. Additionally, Qualcomm's shares surged by more than 8% after the semiconductor company announced its plans to supply Apple with 5G modems for smartphones through 2026.

Investors are eagerly awaiting crucial inflation data in the coming week, particularly after a series of economic data releases last week showed stronger-than-expected performance, renewing concerns that the Federal Reserve might consider more aggressive rate hikes than previously anticipated.

Nasdaq is currently retracing towards the 15,300-support level and aiming for the 16,000 mark, its previous peak. This higher level poses a significant challenge for further advancement. Additionally, the median line of the long bullish channel continues to support the trend.