US Stock Futures Surge Ahead of Anticipated Fed Rate Cut; TSMC Sales Boost Market Confidence

As US stock futures continued their upward trend on Friday, with the Dow Jones Industrial Average (YM=F) increasing by approximately 0.3%, the S&P 500 (ES=F) and Nasdaq 100 (NQ=F) also saw gains of 0.3% and 0.4%, respectively. This surge comes as investors anticipate a possible rate cut from the Federal Reserve, with growing confidence fueling the rally. Speeches from multiple Fed speakers, including Michelle Bowman, Neel Kashkari, and Austen Goolsbee, will provide further insight into potential policy changes. Earlier in the day, Raphael Bostic suggested a single rate cut towards the end of the year, but emphasized the importance of waiting for clear evidence of declining price pressures before making any moves. Additionally, TSMC’s impressive 60% increase in April sales due to heightened artificial intelligence demand and a resurgence in consumer electronics contributed to positive market sentiment. These developments have led to a third consecutive weekly gain for the S&P 500, representing the strongest performance over six sessions this year. Since hitting its lowest point on May 1, the S&P 500 has risen by 3.9%. Overall, these factors have created a sense of optimism in the market, which appears to be compounding.