Fed Rate Hike Boosts US Stocks, but Higher Interest Rates Loom

US stock futures rallied on Thursday, September 17, after the Federal Reserve's first interest-rate hike under Chair Kevin Warsh. The central bank's decision strengthened investors' confidence in its willingness to contain inflation.

The positive momentum could be particularly significant for investors in the second half of September, which is traditionally considered a weak month for the stock market. Since the beginning of the month, the S&P 500 has fallen 1.7%.

With some uncertainty surrounding monetary policy removed, market participants were able to return to their usual investment strategies. Technology stocks also gained, with Nvidia and Amazon shares each rising more than 1% in premarket trading.