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Stock futures revived Thursday after the Federal Reserve’s revised rate outlook for next year sent the Dow Jones Industrial average tumbling by 1,100 points to its 10th straight loss.
Futures for the Dow Jones Industrials gained 291 points, or 0.7%, to 43,068.
Futures for the S&P 500 added 46 points, or 0.8%, to 5,986.25
Futures for the NASDAQ rocketed 152, or 0.7%, to 21,653.75.
Stocks plunged Wednesday after the Federal Reserve struck a heavy blow to the roaring bull market, signaling that it was likely to only cut interest rates twice next year, down from the four reductions that had been penciled in during their last forecast in September. The central bank also trimmed its benchmark overnight borrowing rate a quarter percentage point Wednesday, to a target range of 4.25% to 4.5%, but the question now is what policymakers will do in 2025.
Chair Jerome Powell didn’t offer investors much in the way of immediate comfort. “We’re at 4.3% — that’s meaningfully restrictive and I
think it’s a well-calibrated rate for us to continue to make progress on inflation while keeping a strong labor market,” Powell said at a press conference following the Fed meeting, noting that cutting rates in recent months has allowed the central bank to “be more cautious as we consider more adjustments to our policy rate.”
But with the revamped Fed outlook, the Dow slid 1,123.03 points, or 2.58%, to 42,326.87 —posting its longest losing streak since 1974, and putting the index on track for its worst weekly performance since March 2023.
In early trading Thursday, Micron Technology plunged 14% after the chipmaker reported weaker-than-expected guidance for the second quarter.
In Japan, the Nikkei 225 slipped 0.7% Thursday, while in Hong Kong, the Hang Seng dipped 0.6%
Oil prices dipped 0.08 cents to $70.50 U.S. a barrel.
Gold prices faltered $35.20 to $2,618.10 U.S. an ounce.
Dow Futures Bounce After 1,000+ Fall