US Stocks Likely To Open Higher As Fed Says Tariff-Induced Inflation Will Be 'Transitory:' Any Pullback In Equities 'Offers An Opportunity,' Says Expert
U.S. stock futures rose on Thursday following the Federal Open Market Committee’s (FOMC) decision on Wednesday. Futures of all four benchmark indices were higher in premarket trading.
On Wednesday, the stocks advanced after Federal Reserve Chairman Jerome Powell announced that the inflation caused by President Donald Trump’s tariffs would be “transitory” in nature. Furthermore, the “dot plot” projected two rate cuts in 2025, maintaining the Fed’s initial forecast.
The 10-year Treasury yield stood at 4.22%, while the two-year yield was at 3.97%. According to the CME Group's FedWatch tool, there is an 82.6% chance that the Federal Reserve will keep the interest rates unchanged during its May meeting.
Futures
Change (+/-)
Nasdaq 100
0.46%
S&P 500
0.40%
Dow Jones
0.29%
Russell 2000
0.44%
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Thursday. The SPY was up 0.29% to $568.76, and the QQQ advanced 0.40% to $482.80, according to Benzinga Pro data.
Cues From The Last Session
Energy, technology, and consumer discretionary sectors led a broad rally on Wednesday, propelling the S&P 500 index. This surge occurred alongside the Federal Reserve’s decision to maintain interest rates.
Despite projecting two 2025 rate cuts, the Fed’s dot plot now signals lower growth and higher inflation, sparking stagflation worries.
Notably, Nvidia Corp. (NASDAQ:NVDA) rebounded 1.8% after its CEO’s address, and Boeing Co. (NYSE:BA) soared nearly 7% on delivery and cash flow improvement plans. Meanwhile, mortgage applications declined, but all S&P 500 sectors closed positively.
As of Wednesday, the Nasdaq 100 remains in correction territory, having fallen 11.19% from its prior peak. Similarly, the Dow Jones and S&P 500 have dropped 6.70% and 7.68%, respectively, from their 52-week highs.
Index
Performance (+/-)
Value
Nasdaq Composite
1.41%
17,750.79
S&P 500
1.08%
5,675.29
Dow Jones
0.92%
41,964.63
Russell 2000
1.57%
2,082.08
Insights From Analysts
Market volatility, driven by tariff uncertainties and ...
