Dow futures showed modest gains on Wednesday night (Thursday AEDT) as investors grappled with a sobering outlook for financial markets following a sharp sell-off earlier in the day.
By 10:25 am AEDT (11:25 pm GMT) futures for the S&P 500 and the Nasdaq 100 edged 0.1% higher, while the Dow gained 0.2%.
After-hours trading saw Micron Technology plunge 14.8% following weaker-than-expected guidance for the second quarter, further weighing on market sentiment.
The cautious recovery comes after the Dow Jones Industrial Average tumbled 1,123 points, or 2.6%, to 42,326.9 during regular trading hours on Wednesday. This marked its 10th consecutive loss, the longest streak since 1974.
The S&P 500 fell 3% to 5,872.2, while the Nasdaq Composite dropped 3.6% to 19,392.7, driven by steep losses in the technology sector.
The sell-off was triggered by the Federal Reserve’s tempered outlook on monetary easing. While the central bank cut its benchmark interest rate by 25 basis points to a range of 4.25%-4.5%, policymakers signalled only two rate cuts in 2025, down from four previously projected.
The Federal Reserve's revised stance dashed investor hopes for more aggressive monetary easing. Treasury yields climbed sharply, with the 10-year yield rising over 13 basis points to exceed 4.50%.