U.S. stock futures rose Wednesday night as traders evaluated the Federal Reserve’s decision to slash interest rates by a half percentage point, the first such reduction in four years.
Dow Jones Industrial Average futures climbed 100 points, or 0.2%, while S&P 500 and Nasdaq 100 futures gained 0.4% and 0.5%, respectively.
In extended deals, Steelcase dropped 10% in after-hours trading following a revenue miss in its second-quarter results.
The office furniture manufacturer reported $855.8 million in revenue, falling short of analysts' expectations of $864.2 million. However, the company beat earnings estimates, posting adjusted earnings of 39 cents per share against a consensus of 37 cents per share.
Steelcase also provided a third-quarter revenue forecast below market expectations.
Earlier in the day, the Federal Reserve lowered its overnight lending rate to a range of 4.75% to 5.00% from the previous 5.25% to 5.5%. This move surprised some investors, as many had expected a smaller quarter-point cut.
The size of the rate reduction led to initial market optimism, but stocks eventually closed Wednesday’s session lower. The S&P 500 and Dow both briefly hit record highs before closing 0.3% lower, while the Nasdaq Composite also fell 0.3%.
Ahead in Thursday’s trading, market participants will be monitoring key earnings reports from Darden Restaurants, FedEx, and Lennar, as well as fresh existing home sales and jobless claims data.