The Federal Reserve’s 25‑basis‑point hike to a 3.75%-4% target sent a ripple through the markets, lifting Dow futures by 0.7% to 379 points—its strongest move since the previous Wednesday’s 1.2% slide.
The decision came after Chair Kevin Warsh flagged inflation as still too high, a stance that nudged investors away from the 1.2% dip experienced on the last trading day when financial stocks led the rout.
S&P 500 futures gained 0.8% and Nasdaq‑100 futures rose 1.1%, reflecting a rebound in tech stocks that had slumped earlier in the week. Oil prices also eased—U.S. crude fell 1.5% to $100 a barrel, while Brent slid 2% to $103.48—supporting overall optimism.
Analysts had projected a 0.5% rise in Dow futures on Thursday; the actual 0.7% gain beat expectations and lifted the index’s rally momentum, contrasting sharply with the 0.5% S&P decline seen on Wednesday.
Market participants now shift focus to the Friday release of weekly jobless claims and the upcoming August housing starts data, both of which could shed light on the economy’s resilience amid higher borrowing costs.
As Asian markets mixed—with Nikkei up 0.33% and China’s CSI 300 down 0.45%—the U.S. futures’ uptick signals a tentative rebound, but traders remain vigilant for any Fed commentary that could alter the 3.75%-4% range outlook.