U.S. stock index futures surged on Wednesday, recovering from earlier losses as investors regained risk appetite.
The bounce was supported by reassuring comments from a Bank of Japan (BOJ) policymaker about interest rates. Major tech stocks saw gains of over 1% in premarket trading.
Wall Street’s main indexes had strong gains on Tuesday after Federal Reserve officials’ comments alleviated recession fears.
However, earnings reports showed mixed results: Super Micro Computer and Dell Technologies both dropped, while Airbnb fell sharply after projecting lower revenue and shorter booking windows.
BOJ Deputy Governor Shinichi Uchida’s remarks suggested that the central bank would hold off on further rate hikes amidst market instability.
This follows the BOJ’s July rate increase, which had initially caused global stock market turmoil. Analysts believe that while the current volatility is challenging, it could lead to a healthier market environment over time.
Reuters