S&P 500 futures rose Wednesday night as investors looked beyond the latest rate hike and comment from the Federal Reserve.
Futures linked to the broad market index gained 0.1%. Nasdaq 100 futures up 0.7%, helped by meta stocks. Futures linked to the Dow Jones Industrial Average ticked down 93 points.
Meta was up more than 19% in extended trading after reporting fourth-quarter sales and announcing a $40 billion share buyback. That helped investors overlook losses in the business unit that oversaw the Metaverse.
The moves follow a positive day for the three major indices. The S&P 500 reversed losses to end the regular session up 1.05%, while the Nasdaq Composite closed 2% higher. Meanwhile, the Dow edged up 0.02% after falling more than 500 points earlier in the day.
Investors closely watched Wednesday’s Fed meeting, which announced a 0.25 percentage point hike in interest rates. That marked a fall from the 0.5 percentage point gain at the December meeting and boosted investor optimism that inflation is cooling enough for the central bank to take notice. But the bank gave no hint of an impending pause in rate hikes.
“Traders believe the Fed is behind the curve and that the risk of inflation is receding fast,” said Jamie Dutta, market analyst at Vantage. “The Fed is poised to change its mind and may have to do so if the economy loses momentum.”
Investors will be watching for earnings reports from household names like Apple, Alphabet, Amazon, Ford Motor and Starbucks on Thursday. You’ll also look for data on unemployment claims, productivity, labor costs, and factory orders.
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