U.S. stock futures trended higher on Thursday morning after the Federal Reserve announced its first rate cut in four years yesterday. The U.S. central bank lowered its overnight lending rate by 50 basis points to the range of 4.75% to 5.00% from 5.25% to 5.5%. Futures on the S&P 500 (SPX) and the Nasdaq 100 (NDX) were up by about 1.07% and 1.64%, respectively, at 2:42 a.m. EST, September 19, while futures tied to the Dow Jones Industrial Average (DJIA) moved higher by 0.64%.
The Fed signaled another 50 basis points rate cut over the course of its two remaining policy meetings by the end of this year. Major indices closed lower on Wednesday after rising initially in reaction to the Fed’s interest rate cut decision. The Dow Jones and the S&P 500 fell 0.25% and 0.29%, respectively, while the Nasdaq Composite declined 0.31%.
On the economic front, investors will be looking at the latest weekly jobless claims report and August’s existing home sales data. These reports will provide investors additional insights into the state of the U.S. economy.
Coming to key earnings releases, logistics giant FedEx (FDX), Darden Restaurants (DRI), and Lennar (LEN) are scheduled to announce their quarterly results today.
Meanwhile, the U.S. 10-year treasury yield was up on Thursday, floating near 3.711% at the time of writing. Further, the WTI crude oil futures are trending higher, hovering near $71.13 per barrel as of the last check.
Elsewhere, European markets are expected to open higher on Thursday in reaction to the Fed’s rate cut move. Investors will look forward to the Bank of England’s interest rate decision to be announced today. The Bank of England is expected to hold rates steady due to stubborn inflation.
Asia Pacific Markets Traded Higher on Thursday
Asia Pacific markets trended higher today, as investors cheered the Fed’s rate cut. Moreover, the Hong Kong Monetary Authority slashed its interest rate by 50 basis points to 5.25%. This move was expected as Hong Kong’s currency is pegged to the U.S. dollar.
At the time of writing, Hong Kong’s Hang Seng Index and China’s Shanghai Composite Index were up 2.04% and 0.62%, respectively, while the Shenzhen Component Index rose 1.09%.
Likewise, Japan’s Nikkei and Topix indices were up 2.04% and 2.01%, respectively.
Interested in more economic insights? Tune in to our LIVE webinar.
