US pre-open: Futures rebound after Fed's first rate hike in three years

(Sharecast News) - Wall Street futures were in the green ahead of the opening bell on Thursday after the Federal Reserve announced its first interest rate hike in three years. As of 1230 BST, Dow Jones futures were up 0.71%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.80% and 1.05% firmer, respectively.

The Dow closed 631.21 points lower on Wednesday, extending losses recorded in the previous session after Kevin Warsh stressed that inflation risks had not improved.

The Federal Reserve's decision to deliver a widely expected quarter‑point increase was still in focus ahead of the open on Thursday, with the central bank lifting the federal funds target range to 3.75% to 4%, and signalling that another move was likely before year‑end. Chairman Kevin Warsh said inflation "remains too high", underscoring the risk of further tightening.

Market participants were also keeping a keen eye on the relationship between Warsh and Donald Trump, who continued to push for lower rates after the FOMC's decision. "Interest rates in the United States should be 1%, or less, because we are the best credit in the world - by far," Trump said on social media.

Ahead of the open, the yield on the benchmark 10-year Treasury note was little changed at 5.002%, while the 30-year Treasury yield was flat at 5.348%.

On the macro front, August building permits and housing starts figures were slated for release at 1330 BST, as were weekly jobless claims from the Labor Department and the Philadelphia Fed's September manufacturing survey, while August pending home sales will follow at 1500 BST.

No major earnings were scheduled for release on Thursday.





Reporting by Iain Gilbert at Sharecast.com