U.S. stock futures were up Tuesday morning following a statement by a senior Federal Reserve official that a rate cut “may be warranted soon.” This shift in the market helped pare some of yesterday’s losses where a selloff took place in the technology sector.
James Bullard, chief executive officer of the Federal Reserve Bank of St. Louis, made this statement late Monday bringing a wave of relief to markets after a rough May.
The three main American stock indexes fell roughly 6% in May, predominantly tied to trade dispute between China and the U.S. Additionally, Washington’s recent threat to apply tariffs to Mexican imports has contributed to market negativity.
Bullish investors view this recent statement by the Fed as having the potential to change the overall sentiment in the markets. Both bulls and bears will be paying close attention to Chairman Jerome Powell’s speech later today at a monetary policy conference in Chicago for additional insight.
- Micro E-mini S&P 500 (MES) Futures: +1.06%
- Micro E-mini Dow Jones (MYM) Futures: +1.23%
- Micro E-mini Nasdaq (MNQ) Futures: +1.32%
The chart above, created for FREE using NinjaTrader, shows the Micro E-mini Nasdaq’s trading activity over the past 2 days on a 5-minute interval. While yesterday saw a significant drop, the Nasdaq has been up over 1% during today’s trading session. The Block Volume indicator has been added to identify block trades.