Dow stages a comeback on hopes for stimulus

Dow futures are grinding higher on Wednesday as the stock market is on track to erase Tuesday’s losses ahead of the release of Federal Reserve minutes in the afternoon.

Futures of the Dow are up 0.6%, while those of the S&P 500 and the Nasdaq Composite are both 0.7% higher. All three indexes finished lower on Tuesday, with the Dow and the S&P breaking a three-day winning streak.

The Fed will publish the minutes from its July meeting at 2 p.m. ET. During the July meeting, the Fed cut interest rates for the first time since 2008,

Since the rate cut, Fed policymakers have given few public statements. That makes the minutes more important than usual for the market. Investors will look for details on the economy and the risks it is facing to assess the Fed’s next moves.

Expectations for an additional quarter percentage point cut in September are at 98%, according to the CME FedWatch tool.

“Sentiment seems to be improving on the hope for signals of more monetary easing from the Fed and other global central banks in the days ahead,” wrote Priscilla Thiagamoorthy, economic analyst at BMO, in a note to investors.

That shift in sentiment is helping boost riskier assets like stocks and is leading the 10-year Treasury yield higher. The yield last sat at 1.5842%.

Adding to the hopes of monetary policy sentiment, President Donald Trump said Tuesday that his administration was looking at additional tax cuts.

Gold, also a safe haven investment, is slipping, with prices down 0.3% at $1,500. Oil prices are meanwhile up more than 1% at $56.82 a barrel.

The US dollar, measured by the ICE US Dollar Inde,x is little changed, staying in wait-and-see mode ahead of the afternoon release.