Markets on Wall Street drifted higher early today in search of the first gains of the new year, according to the Associated Press. Futures for the S&P 500 rose 0.1% before the bell, while the Dow Jones Industrial Average moved 0.3% higher.
Traders are largely betting the Federal Reserve might first cut interest rates in March. They are putting a high probability on the Fed cutting its main rate by at least 1.50 percentage points during 2024, according to data from the CME Group. The federal funds rate is currently sitting within a range of 5.25% to 5.50%.
Even if the Federal Reserve pulls off a perfect landing to shimmy away from high inflation without causing an economic downturn, some critics also say the stock market has simply run too far, too fast in recent months and is due for at least a pause in its run.
In energy trading, benchmark U.S. crude added 77 cents to $73.47 per barrel in electronic trading on the New York Mercantile Exchange. It jumped $2.32 per barrel on Wednesday as worries flared over the risk that the Israel-Hamas war might spread to other parts of the Middle East. Brent crude, the international standard, added 68 cents to $78.93 per barrel.
In currency trading, the U.S. dollar rose to 144.20 Japanese yen from 143.29 yen.
