From Investing.com: 2024-09-19 05:48:19

U.S. stock index futures surged after the Federal Reserve initiated a half percentage point reduction in rates. Dow Jones rose 475 points, S&P 500 gained 85 points, and Nasdaq climbed 390 points.

The Fed’s rate cut, the first since 2020, was at the higher end of market expectations. This marks the start of an easing cycle with potential for two more 25 bps cuts this year, according to policymakers. Citi predicts another 50 bps cut in November.

Fed Chair Powell tempered expectations by stating the Fed won’t aim for ultra-low rates like during the pandemic. Powell noted the neutral rate will likely be higher, although specifics weren’t provided.

Upcoming earnings for Thursday include reports from Darden Restaurants, FedEx, and Lennar Corporation. Dell Technologies stock saw a 3% increase after declaring a quarterly dividend.

Crude prices rose post-Fed cut, indicating hopes for increased economic activity. Brent contract rose 1.3% to $74.59/barrel, while WTI traded 1.4% higher at $70.87/barrel. US government data showed a bigger-than-expected 1.63 million barrel draw in crude inventories.



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