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Breaking: Beyond Headlines!

Dow Jones set to open higher ahead of Fed’s Powell; Bitcoin; Cisco, Super Micro, ASML and many other movers
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Dow Jones set to open higher ahead of Fed’s Powell; Bitcoin; Cisco, Super Micro, ASML and many other movers

Stock futures are higher early Thursday. The market is taking everything in stride.

Of course, it helps when there are no surprises. Inflation may have increased in October, but the consumer price index was in line with economists’ expectations. That was enough to keep the gathering from stumbling.

Republicans won their 218th seat in the U.S. House of Representatives, the Associated Press projected Wednesday evening, giving the party control of both houses of Congress as well as the presidency. Once again, markets have been expecting a Republican victory since election results began trickling in last week. This will make it easier for Donald Trump to pass laws, which the markets like.

The result of all this is that stock futures rose again early Thursday. S&P 500 futures and the Dow Jones Industrial Average were both up 0.1% before Thursday’s open, while Nasdaq 100 futures were flat.

All three major U.S. stock indexes rose slightly on Wednesday as investors digested CPI data showing inflation rose to an annual rate of 2.6%, up from 2.4% in September. The S&P 500 has now closed higher on six of the last seven trading days.

Despite this slight increase, traders confirmed that a further rate cut will take place in December – now with an 83% chance of obtaining a quarter-point reduction, compared to 59% on Wednesday morning, according to the tool CME FedWatch.

The market’s so-called “fear gauge,” the CBOE Volatility Index (VIX), fell about 5% on Wednesday to its lowest level since July.

But serenity never lasts long on the markets. Inflation data will again be in focus on Thursday, this time with the release of the Producer Price Index.

Federal Reserve Chairman Jerome Powell could be the man to disrupt the peace. Powell dismissed questions about the impact of potential Trump policies on interest rates last week, but the central bank boss will speak again Thursday at the Dallas Regional Chamber.