US stock futures today: Why Dow, S&P 500 and Nasdaq futures are rising after Fed hike
US Stock Futures Climb as Technology Shares Lead Early Rebound
Bharatmorning.com – US equity futures advanced sharply on Thursday morning, pointing to a recovery after Wall Street’s rate-hike sell-off. Technology and semiconductor companies were at the centre of the early gains, while declining Treasury yields and softer oil prices helped lift investor sentiment.
Dow Jones Industrial Average futures rose 619 points, or 1.2%, before the opening bell. Futures tied to the S&P 500 added 1.3%, and Nasdaq-100 futures climbed 1.7%, signalling particular strength in growth-oriented shares.
AI and chip stocks drive the premarket move
Several major technology names moved higher in premarket dealings. Nvidia and Amazon, both part of the group often called the “Magnificent Seven,” gained roughly 2% each. Microsoft rose about 1%.
The advance extended to companies linked to artificial intelligence infrastructure and chip production. Applied Materials, Qualcomm and Intel each rose around 3%. Marvell Technology gained 4.5%, Lam Research increased 4%, and Corning also jumped 4%.
Memory-storage stocks joined the rally, with Seagate Technology and Western Digital each up about 3.5%. The breadth of gains suggested that buyers were again moving into businesses expected to benefit from long-term spending on data centres, chips and AI-related computing capacity.
Generac was among the most notable individual movers. Shares in the generator manufacturer surged 33% after it announced an agreement with Amazon to provide backup power generators for Amazon data centres. The deal highlighted investor interest in companies serving the growing electricity and infrastructure needs of large-scale computing facilities.
Markets recover after Federal Reserve decision
Thursday’s futures gains followed a difficult Wednesday session. The Dow lost more than 630 points, or 1.2%, as financial stocks weighed heavily on the index. The S&P 500 fell 0.5%, while the technology-heavy Nasdaq Composite finished marginally lower.
The earlier decline came after the Federal Reserve delivered its first interest-rate increase in three years. The central bank lifted the overnight federal funds rate by 0.25 percentage point, placing its target range between 3.75% and 4%.
Fed Chair Kevin Warsh said inflation remained too high, and policymakers indicated that another increase could be possible later in the year. Higher borrowing costs can restrain household and business spending, which is why rate decisions often produce an immediate market reaction.
Investors appeared more focused on Thursday on whether stocks could regain momentum after the previous day’s selling. The premarket move did not erase Wednesday’s losses, but it showed a willingness to return to sectors that had been pressured by concerns over monetary tightening.
Lower bond yields support growth valuations
Treasury yields declined on Thursday, offering another source of support for equities. The yield on the benchmark 10-year Treasury note dropped by more than five basis points to 4.951%, moving back below the closely watched 5% threshold.
The 10-year yield had risen above 5% after the Federal Reserve’s decision on Wednesday. When yields move lower, future corporate earnings can appear more attractive relative to bonds, a dynamic that can be particularly helpful for technology shares and other companies valued heavily on expected future growth.
That relationship helps explain why chipmakers, AI-related businesses and other large technology stocks were prominent in the early rebound. These sectors can be especially sensitive to changes in interest-rate expectations, making bond-market moves an important signal for investors.
Oil retreat improves the market mood
Energy prices also eased. US crude slipped below $100 a barrel after falling about 2%, while Brent crude declined roughly 2% to near $102 a barrel.
Supply concerns softened after Saudi Arabia was said to be making more crude cargoes available to Asian refiners. The additional barrels were being moved through ship-to-ship transfers near the port of Sohar in Oman.
Lower oil prices can ease worries about inflation because energy costs affect transportation, manufacturing and household budgets. For markets already assessing the consequences of higher interest rates, the decline in crude offered some relief.
Economic data delivers mixed signals
Fresh US data presented a mixed picture of the economy. Initial jobless claims fell by 10,000 to 196,000 for the week ending September 12, below the 207,000 figure expected by economists. Continuing claims declined by 39,000 to 1.73 million.
The claims figures pointed to continued resilience in the labour market. A relatively low level of layoffs can support consumer spending, though a strong jobs market may also complicate the central bank’s effort to bring inflation down.
Housing indicators were less encouraging. Building permits dropped 2.7% from July to an annualised 1.394 million in August, slightly below the 1.4 million forecast. Housing starts fell 2.6% from the prior month to 1.275 million, compared with expectations for 1.3 million.
The weaker housing numbers underscored the pressure that higher financing costs can place on interest-rate-sensitive parts of the economy. Homebuilding activity often responds quickly when borrowing becomes more expensive for builders and prospective buyers.
Investors weigh opportunity against volatility
Mark Haefele, chief investment officer at UBS Global Wealth Management, said his team remained positioned for additional equity gains while preparing for short-term volatility. He said a broader rally could develop across regions and sectors if monetary tightening stays measured, credit spreads remain stable and corporate earnings continue to expand.
Haefele recommended diversified equity exposure while cautioning against excessive concentration in areas that are highly sensitive to interest rates or reliant on a single source of returns.
For investors, Thursday’s premarket action illustrated how quickly market attention can shift. A rate increase initially triggered broad concern, but falling yields, lower oil prices and renewed demand for technology shares helped create a more constructive tone less than a day later.
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