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Stocks- U.S. Futures Jump on Prospect of Fed Rate Cut

Investing.com - U.S. futures jumped on Thursday as investor sentiment was boosted after the Federal Reserve kept open the possibility of rate cuts in the future.

Policymakers signaled on Wednesday that they would be willing to cut rates in order to combat slowing global growth and cooling inflation. Fed central bankers slashed their rate outlook for the rest of the year, according to the Fed’s dot plot projections, while Chairman Jerome Powell said at a press conference that many agree the case for lowering rates is increasing.

Tech-heavy NASDAQ 100 futures jumped 90 points or 1.2% by 6:46 AM ET (10:46 GMT), while Dow futures rose 211 points or 0.8% and S&P 500 futures inched up 24 points or 0.8%.

Central banks around the world could soon take the Fed’s lead. The Bank of Japan left interest rates unchanged overnight, but signaled it could provide stimulus measures in light of escalating global risks.

Meanwhile the Bank of England is expected to keep rates steady this morning.

Oracle (NYSE:ORCL) surged 5.9% in premarket trade after its quarterly profit beat estimates, while Advanced Micro Devices (NASDAQ:AMD) gained 2.4% and Intel (NASDAQ:INTC) was up 1.4%.

Boeing (NYSE:BA) jumped 1.6% on news that it is in talks with airlines for its grounded 737 Max models after it received a letter of intent for 200 plans from IAG (LON:ICAG).

Facebook (NASDAQ:FB) was up 1.2%, while Tesla (NASDAQ:TSLA) inched up 0.2% after it tumbled to third place in the face for U.S. residential solar installations.

In commodities, crude oil jumped 3.5% to $55.84 a barrel. Gold futures gained 2.7% to $1,384.85 a troy ounce while the U.S. dollar index, which measures the greenback against a basket of six major currencies, fell 0.4% to 97.208.

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