Updated
Updated · CNBC · Sep 18
U.S. Futures Hold Flat After 0.25-Point Fed Hike as AI Rally Lifts Nasdaq 1.7%
Updated
Updated · CNBC · Sep 18

U.S. Futures Hold Flat After 0.25-Point Fed Hike as AI Rally Lifts Nasdaq 1.7%

3 articles · Updated · CNBC · Sep 18

Summary

  • Dow futures edged up 41 points early Friday while S&P 500 and Nasdaq-100 futures were flat after Thursday’s rebound from the Fed-driven sell-off.
  • Thursday’s rally lifted the Dow 316 points, the S&P 500 1.1% and the Nasdaq 1.7%, with technology shares leading as investors looked past higher-for-longer rates toward AI-driven profit growth.
  • The rebound followed Wednesday’s quarter-point rate hike—the Fed’s first in three years—and guidance pointing to at least one more increase this year.
  • Fed Governor Michelle Bowman and Kansas City Fed President Jeffrey Schmid are due to speak Friday as investors seek more clarity on the unanimous hike.
  • For the week, the Dow was still down 1.5% and the S&P 500 off 0.3% through Thursday, while the Nasdaq was up 0.3%.

Insights

Will the Federal Reserve's looming interest rate decision trigger a surprising stock market rally or a crash?
How might AI capital demands and soaring energy costs force the Fed into an unexpected rate hike?
Could a hawkish Fed move actually save long-term bonds from permanently crossing the dreaded 5% threshold?