U.S. stock futures rose slightly Wednesday night as investors reviewed the latest forecasts from the Federal Reserve.
Futures contracts tied to the Dow Jones Industrial Average added 55 points, or just under 0.2%. The S&P 500 index gained 0.2%, while Nasdaq 100 futures gained 0.2%.
Futures moves come after the Federal Reserve benchmark interest rate hike for the first time since 2018 and signaled six more gains this year, spurring a slight rally in equities.
The Fed has significantly raised its forecasts for increase interest rates and inflation in 2022But investors seem to have made those positive changes as evidenced by the fact that the central bank is taking price hikes seriously.
“The dot chart shows they are behind the curve and we all know they are behind the curve and they are,” said Stephanie Link, investment strategist and portfolio manager at Hightower Advisors. try to fix it. “At least they’re telling the market ‘we’re trying to fix it.'”
Jeffrey Gundlach, CEO of Doubleline, said on “Closing bell: After hours“that he expects the market to recover between now and the next Fed meeting in May after the sharp sell-off at the start of the year. He pointed to recent high results on the Cboe Volatility Indexoften referred to as Wall Street’s fear gauge, as an indication that selling has gone far enough, at least in the near term.
“When the VIX goes above 35, I don’t care how bad the ice looks, I don’t care how bad the geopolitics look, you are supposed to be more bullish, not more bearish. And you get got an oversold rally,” said Gundlach.
The quarterly earnings report spurred positive moves for the stock in after-hours trading. Shares of homebuilder Lennar rose 2% after the company reported stronger-than-expected revenue. Retailer Williams-Sonoma saw its stock rise 6% after announcing a dividend increase and beating earnings per share estimates.
On Wednesday, Dow rose 518.76 points, or 1.55%, for the first three-day winning streak over a month. The S&P 500 was up 2.24%, while the Nasdaq Composite was up 3.77%.
Technology shares, which have struggled across the board since late last year, outperformed sharply on Wednesday. Shares of Facebook’s parent Meta Platform were up 6%, while Netflix was up 4%.
Investors also watch the war in Ukraine. On Wednesday, reports on progress in ceasefire negotiations helped boost supply. US President Joe Biden approval of additional weapons to be sent to Ukraine.
Investors will get some fresh economic data on Thursday morning, including initial jobless claims numbers from last week. Housing starts, Philadelphia Fed manufacturing data and industrial production are also expected to be released before alarm bells sound.
