U.S. Stock Markets Rise Ahead of Powell Speech, Salesforce Stands Out

U.S. stock index futures rose on Wednesday, with investors focusing on Federal Reserve Chairman Jerome Powell’s upcoming speech, hoping for additional signals regarding interest rate policies.

Wall Street indexes traded within narrow ranges on Tuesday, starting the new month on a subdued note. This followed strong gains earlier in November, spurred by optimism after Donald Trump’s victory in this year’s presidential election. Investors have been positioning for expansionary fiscal policies and tax breaks anticipated under the new administration.

The S&P 500 rose 0.1%, while the NASDAQ Composite gained 0.4%, both to record highs at the close. The Dow Jones Industrial Average lagged, down 0.2%.

Awaiting Powell’s Speech for Rate Signals

Federal Reserve Chairman Jerome Powell is expected to speak later Wednesday, potentially providing critical insights into the central bank’s plans for interest rates.

His speech comes just weeks before the Fed’s final meeting of 2024, where markets widely anticipate a 25-basis-point rate cut. However, the longer-term outlook for interest rates remains uncertain, particularly with recent indications that inflation remains above target.

Concerns about inflation have been amplified by the potential for protectionist trade policies under Trump’s administration, including threats of higher tariffs on imports from BRICS nations, Canada, and Mexico.

Beyond Powell’s remarks, the focus will shift to November’s nonfarm payrolls data, set for release on Friday. Investors are expecting a strong report amid signs of continued labor market strength.

Salesforce Soars After Strong Q3 Results

Quarterly results from companies such as Foot Locker (FL), Dollar Tree (DLTR), and Chewy (CHWY) are expected on Wednesday. However, Salesforce (CRM) stole the spotlight with its impressive Q3 performance.

Salesforce shares surged nearly 10% in pre-market trading after the cloud-based software company exceeded revenue estimates for the third quarter. Additionally, Salesforce raised the low end of its annual revenue forecast, driven by robust enterprise spending on its cloud services portfolio.

Oil Prices Rise Ahead of OPEC+ Meeting

Crude oil prices climbed on Wednesday, bolstered by escalating geopolitical tensions and the possibility that OPEC+ might extend supply cuts to counter weakening global demand.

Key geopolitical concerns influencing oil prices include:

• The fragile ceasefire between Israel and Hezbollah in Lebanon.
• The declaration of martial law in South Korea.
• Ongoing conflicts in Syria and Ukraine.

Although U.S. oil inventories unexpectedly rose, according to industry data released Tuesday, attention is now on Thursday’s OPEC+ meeting, where the group will discuss production levels.

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) delayed their planned Sunday meeting to Thursday, allowing for additional time to reach an agreement on production cuts.

OPEC+ has aimed to gradually reduce supply cuts through next year. However, concerns persist that weak demand and rising supply in 2025 could lead to a steep drop in prices.