Mint ·
Economy, business and finance
US market prediction today: S&P 500, Nasdaq futures jump up to 1% as Treasury yields ease, oil falls
US stock futures rose on September 17, supported by rallying Treasuries and falling oil prices after the Federal Reserve's interest rate hike. The S&P 500 futures increased by 0.8%, while Nasdaq 100 climbed 1.1%, with a focus on the Fed's tightening prospects.
US stock futures were trading higher in Thursday’s trade, 17 September, as a rally in Treasuries and a drop in crude oil prices lent support to the market a day after the Federal Reserve raised interest rates for the first time since 2023.
Futures for the S&P 500 rose 0.8%, while those for the Dow Jones Nasdaq 100 climbed 0.7% and 1.1% respectively. The gains in futures came after Wall Street closed lower on Wednesday, with the S&P 500 falling 0.5% and the Dow Jones Industrial Average declining 1.2%.
The Federal Open Market Committee voted unanimously to raise the benchmark interest rate to a range of 3.75% to 4% on Wednesday.
The much-anticipated rate hike eased pressure on Treasuries, with the benchmark 10-year Treasury yield falling 2 basis points to 4.986%. The 30-year Treasury yield was down 1 basis point at 5.333%, while the yield on the 2-year note slipped 1 basis point to 4.715%.
New policy projections showed that 16 of the 18 policymakers anticipate at least one more quarter-percentage-point hike by the end of this year, while only two expect rates to remain at current levels. Warsh, apparently, again did not submit a rate projection.
In his remarks to reporters, Fed Chair Kevin Warsh reiterated his concerns over inflation, saying too many categories of products and services were showing annualised price gains above 3% on both a six- and 12-month basis.
At the same time, the Fed Chair said the US economy remained strong, pointing to solid GDP growth, higher consumer spending and lower jobless claims as signs of resilience in economic activity.
The Fed’s decision to raise rates also came despite pressure from US President Donald Trump, who recently threatened to escalate his trade wars if the central bank did not lower interest rates. On Sunday, he repeated his argument that US borrowing costs should be the lowest in the world.
Oil prices eased in trade, extending their losses as reports of additional Saudi crude cargoes being shipped through Oman eased supply concerns. However, prices remained above $100 a barrel amid fears that the widening Middle East conflict could further disrupt supplies, Reuters reported.
Brent crude futures fell $1.50, or 1.42%, to $104.33 a barrel, while US West Texas Intermediate futures declined $1.09, or 1.06%, to $101.34 a barrel. Both contracts had fallen by about $3 on Wednesday.
The latest easing in supply concerns came after Saudi Arabia offered additional crude cargoes to Asian refiners through ship-to-ship transfers off Oman’s Sohar port, people familiar with the matter told Reuters. The move could help offset some of the disruption caused by attacks on the East-West pipeline to the Red Sea.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.