US stock futures rose on Thursday morning after the Federal Reserve signaled the possibility of multiple rate cuts in 2024, leading the Dow Jones Industrial Average to close at a new all-time high.
Futures linked to the Dow climbed by 0.34%, adding 125 points. S&P 500 futures and Nasdaq 100 futures also saw gains of 0.4% and 0.5%, respectively.
The Federal Open Market Committee (FOMC) kept interest rates unchanged within the range of 5.25% to 5.5%, aligning with expectations on Wall Street. Market sentiment was lifted as policymakers hinted at three potential rate cuts in the coming year.
In regular trading, the Dow surged by 1.4%, closing at 37,090.24, marking the first time the index closed above 37,000 and breaking its previous record from January 2022. The S&P 500 added 1.37%, reaching above 4,700 for the first time since January 2022, while the Nasdaq Composite gained 1.38%. All three major averages reached new 52-week highs. US stock futures
Commenting on the central bank’s outlook, Ross Mayfield, an investment strategy analyst at Baird, noted that the Fed’s commentary acknowledged a potential path to a soft landing, suggesting the possibility of easing policy more than the market expects in 2024.
In extended trading, shares of Adobe declined by more than 4% following conservative guidance for 2024 earnings and revenue.
Investors are anticipated to closely watch economic data on Thursday, including weekly jobless claims, November’s retail sales and imports data, as well as October’s business inventories report.
The benchmark rate broke below 4% for the first time since August, as traders mounted bets on Fed rate cuts for 2024. The 10-year was last trading around 3.95%.