Nasdaq 100 Soars as Oil Prices Plummet
US stock futures rose on Friday, led by gains in the Nasdaq 100, as lower oil prices eased some of the inflation pressures that had rattled markets earlier in the week. The Nasdaq 100 futures advanced about 137 points, or 0.6%, while S&P 500 futures gained roughly 0.3% and Dow futures edged 0.2% higher.
The moves followed Thursday's rebound, when the Nasdaq climbed 1.7% and the S&P 500 rose 1.1% after investors reassessed the Federal Reserve's first rate increase in more than three years.
Brent crude fell towards $102.60 a barrel, while WTI slipped below $100, helping to take some pressure off longer-dated Treasury yields. This comes as the Bank of Japan raised its policy rate by 25 basis points to 1.25%, with seven policymakers voting in favor and two dissenting.
The decision passed, but the yen weakened rather than strengthened, falling towards 158 per dollar as investors focused on the two dissenting votes and Governor Kazuo Ueda's cautious guidance on how quickly additional tightening might follow. This matters for Wall Street, as Japanese investors hold about $2.5 trillion in US stocks, bonds, and other securities.
The Bank of Japan's rate hike could potentially reduce demand for US assets and put upward pressure on Treasury yields. However, the retreat in oil prices has eased some of the discount-rate pressure on long-duration technology shares.