Futures on the Nasdaq Rise 1% as Stocks Rise Following the Fed – Europe Market Wrap
US equity futures rallied and Treasury yields fell after the Fed delivered its first interest rate cut of 2025, with traders eyeing the prospect of deeper easing ahead.
Contracts on the Nasdaq 100 spiked 1.1% as traders shook off a choppy stretch that followed the Fed’s quarter-point move on Wednesday. S&P 500 futures advanced 0.9%. US government bonds recovered, with the 10-year yield slipping three basis points to 4.05%. The Dollar held on to its post-Fed advance.
Markets entered Fed day with equities near all-time highs on expectations officials would move quickly to support a labor market under strain. Yet despite the cut, sentiment wavered as traders weighed policymakers penciling in two more reductions for 2025 against Chair Powell’s warning that “there are no risk-free paths” amid elevated inflation.
In the UK, attention will shift later Thursday to the BoE’s policy announcement at noon in London. Officials are expected to keep the base rate at 4% and possibly rule out additional decreases in 2025, if inflation remains high.
Economists and investors also expect the BoE to scale back its quantitative tightening program, citing concerns that gilt sales have contributed to bond market instability.
