Wall St Futures Rise as Fed Rate Hike Lifts Long-Standing Overhang
Dow, S&P 500 and Nasdaq futures rose after the Federal Reserve’s rate hike, while traders priced a 51% chance of another increase in October.
- On Thursday, U.S. stock index futures surged following the Federal Reserve's interest rate hike on Wednesday, removing a source of market anxiety while aiming to control persistent price pressures.
- The Federal Reserve's dot plot chart projects one more hike this year but stopped short of signaling any moves next year, with officials indicating additional increases may be needed in coming months.
- Alphabet and Meta shares rose more than 1% each before the bell, while CoreWeave, Nebius, and IREN gained 6%, 9%, and 5% respectively; Fluence Energy tumbled 18% after lowering revenue forecasts.
- Investor attention now shifts to the Bank of England's interest rate decision, where rates are expected to stay at 3.75 per cent despite markets pricing an 80 per cent chance of a November hike.
- Northlight Asset Management's Chris Zaccarelli noted inflation has exceeded targets for over five years, while JPMorgan Asset Management's Tai Hui warned investors may need to reassess valuations if the Fed remains hawkish into 2027.
11 Articles
11 Articles
Wall St futures rise as Fed rate hike lifts long-standing ...
Trading on Wall Street started briskly the day after the Fed's interest rate hike.
Wall Street looks set to rally early Thursday, recovering the losses that followed the Fed's rate hike on Wednesday evening. The rate announcement was interpreted as hawkish. The market now sees a 50/50 chance that the Fed will raise rates again in October.
The Federal Reserve raised interest rates and warned of more tightening. Still, Wall Street futures are pointing sharply higher ahead of Thursday's open, pumped by unexpectedly strong jobs figures and AI euphoria. S&P 500 futures are climbing 1.29 percent to 7,721.25 and Nasdaq 100 futures are up 1.67 percent to 29,746.25. The paradox is hard to miss: an interest rate decision that historically tends to cool risk appetite is doing the exact oppo…
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