US stock futures advanced on Thursday, with the Dow Jones Industrial Average climbing 367 points (0.7%) as investors shifted focus from the Federal Reserve's first rate increase in over three years to a more favorable market backdrop. S&P 500 futures gained roughly 0.8%, while Nasdaq 100 futures rose nearly 1%, signaling a broad risk-on tone at the open.
The rebound follows Wednesday's weaker close, when equities initially struggled with the Fed's hawkish stance. The central bank unanimously raised its benchmark range by 25 basis points to 3.75%-4%, a move aimed at accelerating inflation's return to its 2% target. Policymakers' projections also indicate another increase this year, with markets now pricing roughly even odds of a quarter-point move in October. Thursday's rally is less a celebration of easier policy and more a relief response after a heavily anticipated decision finally cleared.
Oil and Treasury yields ease pressure
Brent crude fell toward $104 a barrel, while WTI moved back toward $100, as traders responded to signs that Saudi Arabia could restore part of its East-West pipeline capacity within days. The retreat in oil prices is significant because crude above $100 had intensified inflation fears and helped push Treasury yields sharply higher. The 10-year yield has now eased from above 5%, reducing some of the valuation pressure on growth stocks. This dual relief—lower energy costs and softer yields—provides a more supportive environment for equities, as noted in gold and silver's recent climb.
Megacap tech rebounds
Alphabet and Meta both gained more than 1% in premarket trading, as investors moved back toward large-cap technology after several volatile sessions. Jefferies strategist Jane Gibbons told MarketWatch that the next leg for the S&P 500 could increasingly depend on earnings growth and productivity gains from AI adoption, although higher interest rates are still likely to constrain valuation multiples. This leaves tech in a better position than earlier in the week, when calls for slower AI development triggered a broad reassessment of the sector.
Neocloud stocks surge
CoreWeave, Nebius, and IREN surged in premarket trading, with gains of roughly 6%, 9%, and 5%, as investors returned to AI infrastructure plays. Nebius received an additional boost after reports that the company had raised prices for some computing services. The rebound also matters for investors using ETF platforms to gain thematic exposure to AI infrastructure, where recent volatility has created a sharp split between cloud-computing providers, chipmakers, and traditional software names. This renewed interest in AI infrastructure aligns with broader market trends, as seen in Qualcomm's AWS deal targeting data center revenue.
Fluence plunges after outlook cut
Fluence Energy fell about 18% before the open after cutting its fiscal 2026 outlook amid continuing US supply-chain problems and delays linked to its Houston manufacturing operation. The move is a reminder that Thursday's broader rally remains selective. Falling yields may be lifting market multiples, but individual companies are still being punished aggressively when earnings visibility deteriorates. That distinction may define the post-Fed trade: investors are willing to buy risk again, but only where the growth story still holds up.
As markets digest the Fed's move, the focus shifts to earnings and economic data. The easing in oil and yields provides a temporary tailwind, but the sustainability of the rally will depend on whether companies can deliver on growth expectations. For now, the rebound in tech and AI infrastructure suggests investors are selectively re-engaging with risk assets, as highlighted in Nasdaq's climb ahead of the decision.
This article is for informational purposes only and does not constitute financial advice.
