Dow futures advanced 0.41% after strong manufacturing PMI readings bolstered industrial sector forecasts, suggesting potential resilience despite global supply chain headwinds. Conventional wisdom suggests lower interest rates are great for stocks. They reduce borrowing costs, which is a tailwind for corporate earnings, and they allow businesses to take on more debt to fuel their growth. Falling rates also reduce the yield on risk-free assets like cash and Treasury bonds, which pushes more investors into growth assets like stocks and real estate. Alibaba ( BABA ) stock rose 2% before the bell on Thursday after JPMorgan Chase & Co. ( JPM ) raised its price target for the eCommerce giant. Futures tied to the S&P 500 rose to fresh weekly highs, up 0.48%, amid broad-based sector rotation favoring utilities and healthcare—a defensive bias seen in institutional allocation data.
