Stock futures rise after Fed's rate hike spurs a market sell-off: Live updates CNBC US Stocks Primed to Rebound From Fed Day Slump as Futures Rally Bloomberg.com World shares mostly advance after Wall Street slips follow...
Stock futures climbed on Thursday, with traders trying to claw back some of the losses suffered in the previous session incited by the first Federal Reserve interest rate hike in three years.
Futures tied to the Dow Jones Industrial Average advanced 457 points, or 0.9%. S&P 500 futures were up 0.9%, and Nasdaq-100 futures added 1.2%.
Oil prices declined, giving a boost to equities. U.S. crude traded 2% lower around $100 per barrel. Brent slid 2% to about $102 a barrel.
On Wednesday, the blue-chip Dow lost more than 630 points, or 1.2%, dragged down by financial services names. The broad market S&P 500 edged lower by 0.5%, while the tech-heavy Nasdaq Composite ended the session marginally lower.
Those moves came after the Fed raised the overnight federal funds rate by a quarter percentage point, bringing the target range to between 3.75% and 4%. Policymakers also signaled another hike could come this year, with Fed Chairman Kevin Warsh saying that inflation remains too high.
Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note on Thursday that his team remained "positioned for further equity gains while preparing for near-term volatility."
"If tightening remains measured, credit spreads remain stable, and profits continue to grow, the rally should have scope to broaden across sectors and regions," he said. "We recommend diversified equity exposure while avoiding excessive concentration in areas that are particularly sensitive to interest rates or rely on a single return driver."
Investors are now turning to Thursday's economic data for further clues on the economy's health.
Weekly jobless claims data will be out at 8:30 a.m. ET. Traders are also monitoring August's housing starts, which could offer a read on how elevated borrowing costs are affecting residential construction.
In Asia, Japan's Nikkei 225 closed 0.33% higher, while South Korea's Kospi ended flat. Mainland China's CSI 300 closed 0.45% lower. Australia's benchmark S&P/ASX 200 rose 0.41%.
European shares moved higher in early trading on Thursday, with the Stoxx 600 gaining 0.5% and most sectors in positive territory. London's FTSE 100 and Germany's DAX index both posted gains of 0.5%.
Citigroup downgraded Boston Scientific Thursday to neutral from buy while lowering its price target to $50 from $57 per share.
The firm cited increased competition and slower than expected growth in core markets for lowering estimates on the medical device company eight times year-to-date.
A recent cybersecurity breach in August is leaving "hangover effects," forcing the company to scramble to fulfill customer orders as quickly as possible.
While analysts believe management can work through these challenges, they "don't have a handle on the recovery path," and prefer to step aside on the stock. Shares of BSX are down 53% year-to-date.
Reporting synthesized and verified under Nexvoro.tech editorial guidelines. Full primary records referenced via Google News US Business & Markets.
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