Fed Rate Hike Fuels Mixed US Stock Market Ahead of Friday's Earnings
The US stock market is preparing for a mixed open after the Federal Reserve's first rate hike in three years. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closed higher on Thursday due to a dip in oil prices and lower long-dated yields following the Fed's decision.
According to Rebecca Walser, CEO of Walser Wealth Management, Federal Reserve Chair Kevin Warsh played it safe by hiking rates, stating that the Fed's 2% inflation target 'will never happen.' Despite concerns about AI growth and safety worries, technology stocks rallied on Thursday, with Nvidia Corp. (NVDA) stock jumping over 2.5%, Micron Technologies (MU) and Advanced Micro Devices (AMD) surging more than 5% and 6% each.
The Fed's decision to raise interest rates was a unanimous one, and officials Michelle Bowman and Jeffrey Schmid are due to speak on Friday, providing insight into the decision. US stock futures were trading mixed in the overnight session, with Dow futures climbing 0.02%, S&P 500 falling 0.06%, and Nasdaq-100 edging 0.19% lower.