U.S. stock index futures jumped after the Federal Reserve raised interest rates, removing a source of market anxiety. The S&P 500 has lost 1.7% so far this month, and traders now see a higher chance of another increase in October. Oil prices and Treasury yields both eased.
Wall Street futures surged on Thursday after the Federal Reserve raised interest rates, lifting a long-standing overhang from markets. At 4:45 a.m. ET, Dow E-minis were up 340 points, or 0.66%, while S&P 500 E-minis rose 56.25 points, or 0.74%, and Nasdaq 100 E-minis gained 277.75 points, or 0.96%.
With the hike behind them, investors returned to familiar themes. Tech shares gained, and the policy decision will shape sentiment through the rest of September, historically a weak month for equities — so far this month, the S&P 500 has lost 1.7%.
The Fed also flagged that more increases may be needed in coming months to control price pressures, which could bring volatility in the weeks ahead. Traders now see a 51% chance of another rate rise in October, up from nearly 44% a day earlier, according to the CME FedWatch tool.
According to Reuters: "inflation has been above target for over five years", said Chris Zaccarelli, chief investment officer at Northlight Asset Management. He added that Fed Chair Kevin Warsh had threaded the needle well, though the rate hike path from here remains uncertain.
The yield on the benchmark 10-year Treasury slipped, easing some pressure on equities. Meanwhile, oil prices dropped for a second consecutive day, with Brent crude futures down over 1% to $104.43 and WTI crude futures also falling 1% to $101.35.
Shares of neocloud firms rose premarket, with CoreWeave, Nebius and IREN gaining 6%, 9% and 5%, respectively. Fluence Energy tumbled 18% after it lowered its revenue forecast for fiscal year 2026.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
