As investors processed the Federal Reserve’s policy decision, rising oil prices, and a wave of megacap earnings, U.S. stock index futures were divided on Wednesday night after Wall Street ended little changed.
By 21:28 ET (01:28 GMT), S&P 500 futures had increased 0.4% to 7,197.75 points, while Nasdaq 100 futures had increased 0.9% to 27,570.75 points. At 48,874.0 points, Dow Jones futures dropped 0.3%.
The Dow Jones Industrial Average dropped 0.6% on Wednesday as Wall Street closed muted. Both the NASDAQ Composite and the S&P 500 ended the day essentially unchanged.
Fed holds rates steady; oil prices remain elevated
As was generally anticipated, the Federal Reserve kept interest rates unchanged for a third consecutive meeting, but it also revealed widening rifts within the committee.
In what is anticipated to be his last meeting as chair, Jerome Powell cautioned that inflation pressures, especially from the energy sector, “have not even peaked yet,” highlighting a cautious policy view.
Powell also stated that he will continue to serve as a governor on the Fed’s board following his resignation as chair.
Amid worries over limited flows via the Strait of Hormuz, oil prices ended the day 6% higher on Wednesday and continued to rise in Asian trading on Thursday.
Following allegations that U.S. President Donald Trump is planning a protracted boycott of Iran, geopolitical threats have increased.
Washington is proposing a “Maritime Freedom Construct” to partners in an effort to secure commerce lanes, according to a Wall Street Journal article published late on Wednesday, despite the fact that diplomatic efforts are stalling and tensions are still high.
After earnings, “Mag 7” stocks were neutral.
Earnings from large IT companies prompted after-hours transactions after the closing bell.
Following the release of better-than-expected profits due to robust demand for cloud and artificial intelligence, Microsoft (NASDAQ:MSFT) shares saw little movement.
Meta Platforms (NASDAQ:META) saw a 7% decline following reports of reduced capital expenditures.
Alphabet (NASDAQ:GOOGL) saw a 7.2% increase in shares due to gains associated with advertising resiliency, while Amazon (NASDAQ:AMZN) saw a 4% increase due to an earnings beat.
Results from Caterpillar (NYSE:CAT), Merck (NYSE:MRK), and Eli Lilly (NYSE:LLY) are due on Thursday. Later in the day, Apple (NASDAQ:AAPL) is expected to report.
The advance estimate of the first-quarter GDP and the personal consumption expenditures (PCE) index, the Fed’s favored measure of inflation, are among the numerous economic data that are expected on Thursday.
