Stock futures surged on Thursday morning following a day where the three main indices hit fresh highs, coupled with the results of the Federal Reserve’s latest policy meeting.
“Futures linked to the Dow Jones Industrial Average climbed by 126 points, marking a gain of approximately 0.32%. S&P 500 futures saw an uptick of about 0.42%, while Nasdaq 100 futures rose by 0.67%,” reported [source].
In after-hours trading, Micron Technology, a semiconductor company, witnessed a remarkable surge of over 16% driven by earnings that surpassed expectations.
Conversely, Five Below, a discount retailer, experienced a decline exceeding 12% after failing to meet Wall Street’s projections for the final quarter of 2023 and providing a lackluster outlook.
These developments occurred in the aftermath of a bullish session on Wall Street, with all three major indexes reaching record closing highs. The Dow and Nasdaq Composite each saw gains exceeding 1%, while the S&P 500 rose by approximately 0.9%.
The market’s positive momentum persisted as the Federal Reserve maintained its stance, signaling expectations for three interest rate cuts this year. The central bank opted to leave borrowing costs unchanged at its two-day March policy meeting, which concluded on Wednesday.
Chris Zaccarelli, chief investment officer at the Independent Advisor Alliance, commented, “The sum total of this ‘no news is good news’ press conference is that markets continue to have a green light to run higher.”
He further noted, “We aren’t surprised to see the initial reaction from investors to be to push stock prices up and expect that to continue until some new shock hits the system. This Fed isn’t going to stand in the way of the bull market.”
The Russell 2000, consisting of small-cap stocks, outperformed during the session, posting an increase of nearly 2%. Notable gains were also observed in financials and technology stocks.
Looking forward, market participants are poised to closely monitor data on jobless claims and existing home sales conditions scheduled for release on Thursday morning.
Additionally, earnings reports from Darden Restaurants before the opening bell, followed by FedEx and Nike after the market closes, will be closely watched.
