U.S. S&P 500 E-MINI FUTURES UP 1%, NASDAQ 100 FUTURES UP 1.71%, DOW FUTURES UP 1.22%

Bond traders are increasing bets that the Federal Reserve’s next move could be a rate hike before any easing, with swaps implying over a 50% chance of a hike by April next year. Positioning in SOFR futures and options shows growing demand for hedges against higher rates into 2027, alongside widening short exposure in Treasuries as 30-year yields approach 5%. The shift comes amid heightened policy division ahead of Kevin Warsh taking over as Fed Chair, with traders also focused on upcoming US labor data and inflation risks. LPL Financial’s Lawrence Gillum said rate cut odds are fading, while Wellington Management’s Brij Khurana noted the market is not fully pricing a potential hiking cycle.

ASX200 INDEX CLOSED UP 1.31%, AT 8794.40