US stocks are poised for further gains on Thursday following a dovish Federal Reserve statement and strong sales results from Meta Platforms Inc. Futures for the Nasdaq 100 and S&P 500 climbed over 0.5% after a significant rally in tech stocks, which led to the largest gains since February for both indices.
Meta’s impressive performance, which highlighted the benefits of investing in artificial intelligence, bolstered the positive sentiment in technology stocks. In contrast, European markets saw mixed results. The Stoxx 600 fell 0.3% due to disappointing earnings reports from banks and industrial firms, though Rolls-Royce Holdings Plc rose up to 11% after raising its profit forecast.
Attention now turns to the Bank of England’s interest rate decision, expected to be a 25 basis point cut based on Bloomberg forecasts. Federal Reserve Chair Jerome Powell’s comments on Wednesday hinted at a possible rate cut in September, which was seen as favorable for risk assets. Powell’s remarks, combined with a resilient US economy and expected progress on inflation, suggest that a recession risk is being pushed further out.
In Asia, the yen saw increased volatility following the Bank of Japan’s rate hike but later retraced its gains. The dollar rose slightly against other currencies after a significant drop on Wednesday, while Treasury yields increased to 4.05%.
Oil prices continued to rise amid geopolitical tensions, following reports that Iran had ordered a retaliatory strike against Israel.
Related topics:
