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US STOCKS-Futures inch higher as traders raise bets on bigger Fed rate cut
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US STOCKS-Futures inch higher as traders raise bets on bigger Fed rate cut
Sep 13, 2024 12:01 PM

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

*

Boeing ( BA ) slips after US West Coast workers strike

*

Adobe tumbles after forecasting Q4 earnings below

estimates

*

Futures up: Dow 0.18%, S&P 500 0.21%, Nasdaq 0.08%

(Updated at 6:52 a.m. ET/1052 GMT)

By Shashwat Chauhan and Purvi Agarwal

Sept 13 (Reuters) - U.S. stock index futures were

marginally higher on Friday as investors reevaluated the

possibility of a bigger interest rate cut by the Federal Reserve

next week, while Boeing ( BA ) fell after the planemaker's factory

workers went on strike.

Traders' bets of a 50-basis point rate cut jumped overnight,

now standing at 47% compared with 14% on Thursday, CME's

FedWatch Tool showed.

Former New York Fed President Bill Dudley said there was a

strong case for a 50-bps interest rate cut. Separate media

reports calling the decision "a close call" also added to the

uncertainty.

"A couple of articles were published in the Wall Street

Journal and the Financial Times suggesting that a 50-bps move

was still in play, which has led markets to once again

reevaluate their expectations," Deutsche Bank analysts said.

"If pricing stays where it is currently, it would be the

first meeting in years where there's serious uncertainty about

the rates decision."

The dollar came under pressure against major global peers,

while yields on U.S. government bonds eased across the curve.

Bets of the Fed sticking to a smaller 25-bps cut when it

meets on Sept. 17-18 had firmed on Thursday following a slightly

higher producer prices report, which came on the heels of the

August consumer prices data.

Wall Street's main indexes had closed higher in the previous

session, boosted by rising megacap stocks, keeping all three

U.S. benchmarks on track for weekly gains.

Investors will parse the University of Michigan's consumer

sentiment survey for September, which is expected around 10 a.m.

ET (1400 GMT).

Dow E-minis were up 74 points, or 0.18%, S&P 500

E-minis were up 12 points, or 0.21%, and Nasdaq 100

E-minis were up 15.25 points, or 0.08%.

Futures tracking the economically sensitive Russell 2000

small cap index rose 0.8%.

Boeing ( BA ) fell 2.9% in premarket trading as its U.S.

West Coast factory workers walked off the job early on Friday

after overwhelmingly rejecting a contract deal.

Adobe slid 8.1% after the Photoshop maker forecast

fourth-quarter earnings below analysts' estimates, signaling

stiff competition and soft demand for its AI-integrated editing

tools.

Moderna ( MRNA ) fell 4.1%. At least two brokerages

downgraded their rating on the vaccine maker's shares a day

after it pushed back its break-even goal by two years and

predicted 2025 sales below its forecast for the current year.

U.S. equities saw their biggest outflow since April in the

week till Wednesday, according to a report by Bank of America.

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