Prospects for the Dow, S&P, and Nasdaq rally as Powell reassures Wall Street
US stock futures increased as investors processed Fed Chair Jerome Powell’s soothing remarks following the central bank’s Wednesday interest rate hold.
Futures linked to the Dow Jones Average (YM=F) increased by 0.08% on Thursday. Nasdaq futures (NQ=F) increased by 0.14%, while futures associated with the benchmark S&P 500 (ES=F) increased by 0.12%.
A relief that earlier projections for two rate cuts this year held up caused markets to rally despite Wall Street’s expectation that the Fed would leave interest rates steady on Wednesday. Concerns that the US economy would falter under President Donald Trump’s extensive tariffs have raised doubts about the rate decrease trajectory.
Powell added to the positive atmosphere at a press conference after the ruling. The Fed chair told investors that the effects of tariffs on inflation will probably be “transitory” and that the recession risks are still low despite the central bank’s indication that it anticipates higher inflation and slower economic growth. “The economy seems to be healthy,” Powell stated.
Data on unemployment claims and current home sales will be released on Thursday, giving purchasers a new perspective on the labor and housing markets.
