ICM: US Stock Futures Soar on Elections Results, Eyes on the FED

ICM, the leading London-based FX and CFDs provider, reported that the US stocks closed sharply higher on Wednesday following the midterm election results. The greenback bounced-off the lows ahead of the Federal Open Market Committee decision tonight.

Major US indices settled higher as the election results eliminated the uncertainty that was weighing on the stock market. The Dow Jones and S&P500 had their best post-election rally since 1982. As per ICM trading platform, the Dow Jones Industrial Average futures gained 2.2% to a four-week high of 26182, the S&P500 futures rose 2.3% to a three-week high of 2817, and the Nasdaq futures climbed 3% to 7220. The stock traders will focus tonight on the outcome of the FOMC meeting, to grasp clues about the interest rates path. The global markets were under pressure during October due to the expectation of further tightening by the FED.

ICM highlighted that the dollar index which measures the greenback against a basket of major currencies bounced-off a two-week low of 95.68 to settle higher at 96.16. Market participants shifted their focus from elections to the FOMC meeting. The Fed raised interest rates three times earlier this year and is likely to tighten further. The CME Fed watch tool is pricing in only a 7% chance of rate hike in today's meeting while a chance of 75% in December. As per ICM trading platform, the USDJPY traded at a one-month high of 113.81, and the EURUSD retreated from a two-week high of $1.1499 to settle at $1.1425.

Metal prices drifted lower as the dollar strengthened and uncertainty cloud faded. As per ICM trading platform, the gold ounce reversed from a high of $1236 to close at $1226 while the silver ounce settled at $14.55.

Oil prices remain weak on US inventories buildup and record production. The Energy Information Administration reported that the weekly crude oil inventories rose by 5.783 million barrels last week, and the US oil production hit a record high of 11.6 million barrels per day. The rising production is signaling for a new glut period where OPEC could be forced to cut production further to sustain prices. As per ICM trading platform, the West Texas Intermediate crude futures tested an eight-month low of $61.23, and the Brent futures closed at $71.97.

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