US Stock Futures Rise After Fed Rate Increase as Investors Await Bank of England Decision
US stock futures rose on Thursday following the Federal Reserve's latest interest-rate increase, with investors weighing further monetary tightening and global energy supply developments. At 06:59 GMT, Dow Jones futures climbed by 366 points (0.7%), S&P 500 futures gained 52 points (0.7%), and Nasdaq 100 futures rose 215 points (0.7%). The gains came after a decline in Wall Street the previous session when the Fed raised rates by 25 basis points, as expected. The updated Federal Reserve projections suggested another rate hike could occur before year-end. Analysts described Chair Kevin Warsh's press conference as 'net hawkish,' indicating that further increases remain possible. The two-year US Treasury yield hit its highest level since July 2024 following the announcement. Investors also noted changes in the Fed’s policy statement, which removed references to supply shocks and instead emphasized inflation being 'elevated.' Meanwhile, Brent crude futures fell but remained above $100 per barrel amid ongoing concerns about Middle East-related supply disruptions. The Strait of Hormuz remains closed due to US-Israeli military operations against Iran, while developments in Yemen add uncertainty over regional oil exports.
Topics: Dow Jones Federal Reserve inflation Nasdaq S&P 500 stock futures