Dow futures jump more than 300 points, signaling Wall Street’s December start bright

At 6:12 p.m. Thai time, the Dow futures index gained 310 points, or 0.9%, to 34,767 points.

The Dow Jones Industrial Average closed more than 600 points overnight. After Federal Reserve Chairman Jerome Powell (Fed) signaled an end to the quantitative easing (QE) bond purchase program earlier than expected.

The market was also pressured by Moderna executives warning that existing vaccines would be less effective at protecting against COVID-19. Omicron species

Investors are still keeping an eye on Mr Powell’s statement today. He is scheduled to meet with the House of Representatives Financial Services Commission today. After reporting to the Senate Banking Committee yesterday

Goldman Sachs released a report that predicted The Fed will increase its QE cut to $30 billion a month, doubling from $15 billion a month, paving the way for the Fed to raise interest rates in June 2022, the first rate hike since. where the United States faces the COVID-19 epidemic in 2020

Goldman Sachs released the report. After Mr. Powell said yesterday The Fed may cut its QE limit by more than $15 billion a month, which the Fed will discuss at its monetary policy meeting on December 14-15.

“Right now the economy is very strong. and inflationary pressures have increased So I think the time is right for the Fed to consider ending its bond-buying program several months earlier. We will discuss this at the next meeting,” Powell told the commission. Banking at the Senate yesterday

The Fed’s monetary policy committee voted to keep the short-term interest rate unchanged at 0.00-0.25 percent at its November 3 meeting, and the Fed will cut its QE line of $15 billion a month.

starting from November The Fed will cut its purchases of US government bonds by $10 billion a month and reduce its purchase of mortgage-backed mortgage-backed (MBS) debt by $5 billion a month. Such will cause the Fed to end QE altogether in the middle of 2022.

The Fed previously made $120 billion per month in QE, buying $80 billion in US Treasury bonds and $40 billion in MBS bonds.

Investors will keep an eye on US non-farm payrolls on Friday. by analysts that The U.S. Department of Labor will report nonfarm payrolls up 581,000 in November.

The US Department of Labor previously disclosed that Non-farm payrolls increased by 531,000 in October. That was higher than analyst expectations of 450,000 from 312,000 in September. The unemployment rate fell to 4.6%, below analysts’ forecast of 4.7% from 4.8% in September.

Proofread by….Suree Silawong