U.S. stock futures swung between gains and losses on Thursday following Wednesday’s mixed moves. Futures of major benchmark indices were mixed.
The meeting between President Donald Trump and President Xi Jinping yielded significant agreements, including reduced U.S. fentanyl tariffs in exchange for China restarting “tremendous amounts” of U.S. soybean imports, a settled deal on rare earths, and strong indications that a broader trade deal is “pretty soon.”
Despite the positive meeting, Fed Chair Jerome Powell’s speech from Wednesday weighed on stocks as he cautioned that another cut is “not a foregone conclusion—far from it,” pushing back against expectations that had built up across financial markets in recent weeks.
Meanwhile, the 10-year Treasury bond yielded 4.07% and the two-year bond was at 3.59%. The CME Group's FedWatch tool‘s projections show markets pricing a 70.4% likelihood of the Federal Reserve cutting the current interest rates during its December meeting.
