U.S. equity futures moved higher on Thursday as investors weighed the Federal Reserve’s first interest-rate increase in three years against losses in the previous session. The central bank lifted rates by a quarter percentage point Wednesday, with its projections indicating another increase this year.
At 4:16 p.m. (Bangkok time), Dow Jones Industrial Average futures gained 0.72%, a rise of 374 points. Contracts linked to the Nasdaq-100 climbed 1.08%, outpacing the 0.82% advance in S&P 500 futures.
The equity futures gains contrasted with Wednesday’s regular-session performance. Financial-services stocks weighed on the Dow, which dropped 631.21 points, or 1.21%. Losses were smaller elsewhere: the S&P 500 declined 0.45%, and the Nasdaq Composite finished slightly below its previous close.
Investors’ assessment of Fed Chairman Kevin Warsh’s hawkish comments helped stocks recover. Analysts viewed his remarks as reinforcing the central bank’s credibility in addressing inflation.
President Donald Trump opposed the rate decision and advocated lower borrowing costs. He also said he had spoken to Warsh before the Federal Open Market Committee meeting, telling him that siding with the board would make no difference.
Energy markets also drew attention, with crude prices slipping after U.S. Energy Secretary Chris Wright indicated that Saudi Arabia’s East-West pipeline would soon be restored. The pipeline has provided an important alternative for oil unable to pass through the Strait of Hormuz. Global benchmark Brent slid 1.32% to $104.43 a barrel, while U.S. West Texas Intermediate futures retreated 1% to $101.41.
Thursday’s economic calendar will provide the next information for investors assessing the economy. Weekly unemployment-benefit claims are scheduled for 8:30 a.m. (Eastern time). Traders will also examine August housing starts for evidence of how higher borrowing costs are affecting residential building activity.
