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Stock futures rose Thursday as investors bet the Federal Reserve could be done raising rates for 2023. Traders also looked through the latest quarterly earnings reports.
S&P 500 futures gained 0.5%, and Nasdaq 100 futures advanced 0.7%. Futures tied to the Dow Jones Industrial Average added 106 points, up 0.3%.
The benchmark 10-year Treasury yield fell 8 basis points to around 4.71%. The move comes after the Fed kept interest rates unchanged once again and upgraded its assessment of the U.S. economy. To be sure, Chair Jerome Powell would not rule out a rate increase at the December meeting.
“We expected Powell to talk tough and do his best to keep markets from taking the two successive ‘skips’ in interest rate hikes as a green light for risk assets,” said Chris Zaccarelli, chief investment officer for the Independent Advisor Alliance. But, “we were surprised at how detailed he has been in his language that the Fed is still worried about inflation and wouldn’t hesitate to raise rates again in the near future.”
Stocks rallied Wednesday following the Fed decision. The Dow climbed more than 200 points on Wednesday, while the S&P 500 and Nasdaq Composite each ended up more than 1%.
Looking ahead, traders will watch for Thursday morning data on jobless claims, labor costs, productivity and factory orders. Closely watched statistics on nonfarm payrolls, the unemployment rate and hourly wages are slated for release on Friday morning.
Thursday also brings a busy day of corporate earnings. Starbucks, Eli Lilly, Peloton and Fox are among those reporting before the bell, followed by Apple, Paramount, Carvana and DraftKings after the market closes.
SolarEdge tumbled more than 17% after posting an unexpected loss and offering dismal guidance for fourth-quarter revenue. DoorDash climbed more than 9% on earnings that surpassed Wall Street forecasts, while Etsy fell 4% after management warned of a challenging environment for consumer discretionary spending.