Stock futures rise as investors assess Fed update
Stock futures rose on Wednesday night after Federal Reserve chairman Jerome Powell provided an update on the central bank's plans to raise rates, saying there's «quite a bit of room» to do so before hurting the labor market.
Futures tied to the Dow Jones Industrial Average rose 97 points, or 0.2%. S&P 500 futures and Nasdaq 100 futures gained 0.3% and 0.5%, respectively.
Some tech shares were higher in extended trading, after continued swings in the regular session. Netflix jumped more than 4% on news that Pershing's Bill Ackman bought 3.1 million shares. Tesla gained almost 3% following a strong earnings report. Meanwhile, Intel lost 2%, despite strong earnings.
In regular trading, the Dow ended the day down 129 points, after gaining more than 500 points at one point, following the Fed's update. The S&P 500 lost 0.2% and the Nasdaq Composite was little changed, with a boost from Microsoft's post-earnings gain.
The week's volatility continued on Wednesday and stocks took a turn lower after the Fed concluded its two-day meeting and signaled rate hikes ahead to fight persistent inflation. After chair Jerome Powell's post-meeting remarks, the benchmark 10-year Treasury yield climbed above 1.8%.
«While offering some clarity on how the Fed would begin the process of removing policy accommodation, the outcome of the meeting fell short in providing the needed guidance on the timing and magnitude of the shift in policy,» said Charlie Ripley, senior investment strategist for Allianz Investment Management.
Uncertainty about the timing and magnitude of the Fed's plans to tighten monetary policy had been building since the December meeting.
«Today's meeting has market participants fully convinced that a March hike is certain, but
Read more on cnbc.com
