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US STOCKS-Futures muted on uncertainty about Fed rate-cut size
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US STOCKS-Futures muted on uncertainty about Fed rate-cut size
Sep 14, 2024 5:11 AM

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

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

*

Futures up: Dow 0.08%, S&P 500 0.15%, Nasdaq 0.07%

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

on Friday as caution prevailed about the size of the Federal

Reserve's interest rate cut that is expected next week, while

Boeing ( BA ) shares fell after the planemaker's factory workers went

on strike.

Traders' bets now indicate market pricing of a bumper rate

cut have shot up, with chances of a 50-basis point cut standing

at 41% compared with 14% seen on Thursday, according to CME's

FedWatch Tool.

Former New York Fed President Bill Dudley said there was a

strong case for a 50-bps interest rate cut.

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

first meeting in years where there's serious uncertainty about

the rates decision," Deutsche Bank analysts said.

"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

re-evaluate their expectations."

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.

Meanwhile, Boeing ( BA ) fell 3.9% in premarket trading as

its U.S. West Coast factory workers walked off the job early on

Friday after overwhelmingly rejecting a contract deal.

Later in the day, the University of Michigan will issue its

consumer sentiment survey for September around 10 a.m. ET (1400

GMT).

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.

At 05:06 a.m. ET, Dow E-minis were up 32 points, or

0.08%, S&P 500 E-minis were up 8.5 points, or 0.15%, and

Nasdaq 100 E-minis were up 14.5 points, or 0.07%.

Futures tracking the economically sensitive Russell 2000

small cap index were up 0.6%.

Among individual movers, Adobe slid 8.3% 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 ) eased 3.5% a day after its shares slid more

than 12% when the vaccine maker 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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