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US STOCKS-Wall St set for higher open as traders raise bets on bigger Fed rate cut
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US STOCKS-Wall St set for higher open as traders raise bets on bigger Fed rate cut
Sep 13, 2024 12:06 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

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Futures up: Dow 0.16%, S&P 500 0.22%, Nasdaq 0.09%

(Updated at 8:18 a.m. ET/1218 GMT)

By Shashwat Chauhan and Purvi Agarwal

Sept 13 (Reuters) - Wall Street was on track to open

slightly 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 43% 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.

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.

"Markets want the FOMC to ease fast and get on with the risk

of recession fighting. The meeting is a risky event and it will

remain so regardless of the 25 or 50 bps easing next week," said

Bob Savage, head of markets strategy and insights at BNY Mellon.

All major U.S. benchmarks had closed higher in the previous

session, boosted by rising megacap stocks, keeping them on track

for weekly gains.

Focus will be on 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 66 points, or 0.16%, S&P 500

E-minis were up 12.25 points, or 0.22%, and Nasdaq 100

E-minis were up 16.75 points, or 0.09%.

Futures tracking the economically sensitive Russell 2000

small cap index rose 1%.

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 8.2% after the Photoshop maker forecast

fourth-quarter earnings below analysts' estimates, while Oracle

jumped 6.2% after the cloud computing company raised

its fiscal 2026 revenue outlook.

Moderna ( MRNA ) fell 3.4%. At least three 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.

Chinese e-commerce firm PDD Holdings ( PDD ) dropped 5.7%

after the Biden administration said it was moving to curb

low-value shipments entering the U.S. duty-free under the $800

"de minimis" threshold.

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