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U.S. stock futures hovered around records as traders greeted a Federal Reserve decision to taper with relief.
What’s happening
-
Futures on the Dow Jones Industrial Average
YM00,
-0.01%
fell 26 points, or 0.1%, to 36009 -
Futures on the S&P 500
ES00,
+0.15%
rose 3 points, or 0.1%, to 4656 -
Futures on the Nasdaq 100
NQ00,
+0.45%
rose 58 points, or 0.4%, to 16188
On Wednesday, the Dow Jones Industrial Average
DJIA,
rose 105 points, or 0.29%, to 36158, the S&P 500
SPX,
increased 30 points, or 0.65%, to 4661, and the Nasdaq Composite
COMP,
gained 162 points, or 1.04%, to 15812.
Each of those benchmark ended at record highs, as the S&P 500 extended its gains for 2021 to 24%.
What’s driving markets
Analysts were still discussing the implications of the Fed’s decision to begin scaling back its bond purchase program. The central bank said it will start reducing purchases by $15 billion per month, after what it called substantial further progress on inflation and labor market goals.
“Broadly our view on interest rate policy is that the Fed will remain patient, leaving nine months between the end of QE and any increase in rates, with our expectation of the first hike being Q1 2023. However, we would acknowledge that the risks are skewed to an earlier move,” said Ryan Djajasaputra, an economist in London for Investec.
The focus begins to shift to the key U.S. jobs report due for release on Friday, as Fed Chair Jerome Powell linked the possibility of starting the rate-hike cycle to a jobs-market recovery.
Rate expectations also are rising overseas, with the Bank of England expected to nudge interest rates higher in a decision due at 8 a.m. Eastern.
The back half of earnings season continues with vaccine maker Moderna
MRNA,
and media giant ViacomCBS
VIAC,
among the companies reporting results.
