Investor Sentiment Bounces Back After Fed-Driven Sell-Off, Driving Premarket Gains for US Equity Futures

MT Newswires Live2024-12-19

US equity futures were higher pre-bell Thursday, recovering from a selloff in the previous session after the Federal Reserve signaled plans for a more cautious approach to rate cuts in 2025.

Dow Jones Industrial Average futures gained 0.7%, S&P 500 futures increased 0.8%, and Nasdaq futures were up 0.9%.

On Wednesday, the Federal Open Market Committee reduced its benchmark lending rate by 25 basis points and flagged fewer cuts ahead than projected in September.

Oil prices were lower, with front-month global benchmark North Sea Brent crude down 0.3% at $73.19 per barrel and US West Texas Intermediate crude down 1.1% at $69.84 per barrel.

US gross domestic product report, scheduled for release at 8:30 am ET, is expected to show a 2.8% annual growth rate for Q3. New unemployment claims are seen dropping to 229,000 in the week ended Dec. 14 from 242,000 claims in the prior week. The Philadelphia Fed manufacturing index is expected to come in at a 2.9 in December versus negative 5.5 in November, according to estimates compiled by Bloomberg.

Existing home sales, due at 10 am ET, are expected to increase to 4.09 million annual rate in November from 3.96 million previously. Forecasters see the index of leading economic indicators declining by 0.1% in November following a 0.4% fall in the previous month.

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