Stock market news today: US futures climb amid revived hopes for Fed rate cut

US stock futures climbed on Wednesday after a top Federal Reserve official hinted the central bank is done with interest rate hikes, opening the door to a possible rate cut.

Dow Jones Industrial Average (^DJI) futures rose 0.3%, while benchmark S&P 500 (^GSPC) futures moved up roughly 0.4%. The tech-heavy Nasdaq 100 (^NDX) was up about 0.5% after the three stock gauges closed higher Tuesday to resume their November rally.

Hopes for a policy pivot grew after Fed Governor Christopher Waller said there was “no reason” to insist rates stay “really high” if inflation continues to cool consistently.

While Fed Governor Michelle Bowman differed, other officials echoed Waller’s dovish comments, with Chicago Fed President Austan Goolsbee voicing concerns about keeping rates “too high for too long.”

Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards

Influential investor Bill Ackman is among those now betting the Fed will start cutting rates earlier than expected, saying the move could come as soon as the first quarter.

Bonds extended gains fueled by dovish comments, with the 10-year Treasury yield (^TNX) — which moves inversely to prices — dropping about 6 basis points to around 4.28%, its lowest since September.

A fresh reading on US third-quarter GDP due later Wednesday should provide more input for debate over the Fed’s next rate move. Thursday’s PCE report on consumer inflation — the Fed’s preferred gauge of price pressures — is also likely to be crucial.

In individual stocks, General Motors (GM) shares jumped 8% in premarket trading after the auto giant said it will buy back $10 billion in shares and raise its dividend by one-third.

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