Major United States stock futures were trading slightly higher on Wednesday night (Thursday AEDT) as investors sought to extend gains after a strong rally driven by the Federal Reserve’s reaffirmed forecast for two interest rate cuts in 2025.
By 9:25 am AEDT (10:25 pm GMT), Dow Jones Industrial Average futures edged up 0.1%, while S&P 500 and Nasdaq 100 futures gained 0.2% each.
On Wednesday, the Fed kept its benchmark interest rate within the 4.25%-4.5% range, as widely expected. Despite projecting higher inflation and lower economic growth, nine of the 19 Fed policymakers expect the rate to be between 3.75% and 4.00% by year-end, according to the Fed's quarterly economic projections.
Four officials anticipate one rate cut, while another four believe rates should remain unchanged. Two policymakers support three cuts this year.
Major benchmarks gained following the announcement, recovering from a sell-off that had been underway since February.
The Dow Jones Industrial Average rose 0.9%, while the S&P 500 climbed 1.1%. The Nasdaq Composite advanced 1.4%, though it remains in correction territory, defined as trading more than 10% below its peak.
Federal Reserve Chair Jerome Powell downplayed the long-term impact of tariffs on inflation, describing the effects as likely to be short-lived.
Earlier this month, President Donald Trump warned that the U.S. economy could experience “a period of transition” as his tariff policies unsettled markets. He granted temporary exemptions on select imports from Canada and Mexico, though these are set to expire on April 2.
Investors now turn their focus to Thursday’s economic reports, including weekly jobless claims and existing home sales data.
On the corporate front, Nike, FedEx, and Micron Technology are scheduled to report earnings on Thursday.
