US stock futures gained ground as investors reacted positively to comments from Federal Reserve Chair Jerome Powell, who offered reassuring signals after the Fed’s decision to keep interest rates steady on Wednesday.
Futures for Dow, S&P 500, and Nasdaq Rise
Futures tied to the Dow Jones Industrial Average (YM=F) rose by 0.2%. Meanwhile, futures for the S&P 500 (ES=F) and the tech-heavy Nasdaq Composite (NQ=F) saw a 0.3% increase. These movements indicate investor optimism following the Federal Reserve’s decision.
Fed’s Decision to Keep Rates Unchanged
The Fed’s choice to maintain current interest rates on Wednesday was largely expected by Wall Street. However, the decision was met with a positive market reaction, particularly due to the central bank’s confirmation of two expected rate cuts this year. This reassured investors who had previously been concerned about the possibility of delays in rate cuts, largely due to worries about the economic effects of President Donald Trump’s wide-ranging tariffs.
Powell Offers Reassurance on Inflation and Recession Risks
During a press conference following the Fed’s decision, Powell provided further reassurance to investors. He acknowledged that inflation is likely to rise and economic growth could slow, but emphasized that any inflationary effects from tariffs would likely be temporary. Additionally, Powell downplayed the risk of a recession, stating that “the economy seems to be healthy.” His remarks helped to calm investor concerns and contributed to the market’s positive momentum.
Economic Data to Watch
Looking ahead, investors will be paying attention to new data scheduled for release on Thursday. Jobless claims and existing housing sales figures are set to provide fresh insights into the state of the labor and housing markets. This data will be closely watched as investors continue to assess the health of the US economy.
In summary, after the Fed’s decision to keep interest rates steady, combined with Powell’s reassuring remarks, the stock market showed signs of growth, indicating investor confidence moving forward.
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