U.S. stock index futures rose on Thursday following the Federal Reserve’s decision to leave interest rates unchanged, easing concerns of imminent rate hikes.
While Fed Chair Jerome Powell acknowledged persistent inflation, he emphasized that current monetary policy is adequate to eventually bring inflation back to the Fed’s target of 2%. Market expectations now lean towards a rate cut, with a higher probability priced in for November according to the CME FedWatch tool.
Although U.S. stocks initially climbed after the Fed announcement, the S&P 500 and Nasdaq closed lower on Wednesday. Attention now shifts to the upcoming nonfarm payrolls data on Friday for insights into the labor market and potential implications for interest rates. Investors are also awaiting weekly jobless claims data and March factory orders figures on Thursday.
