US Stocks Rebound as Tech Sector Leads Gains Amid Fed Hike
US stock futures rose in premarket trading on Thursday, with technology stocks leading the gains. Dow Jones futures climbed 619 points, or 1.2%, while S&P 500 futures gained 1.3% and Nasdaq-100 futures jumped 1.7%. The surge comes a day after Wall Street suffered losses following the Federal Reserve's first interest-rate hike in three years.
The tech sector was driving the market higher, with Nvidia and Amazon gaining about 2% each in premarket trading. Microsoft rose about 1%, while other stocks linked to the artificial intelligence trade also climbed. Applied Materials, Qualcomm, and Intel each gained about 3%. The gains show that investors are buying into parts of the technology and AI-related trade.
The Federal Reserve increased the overnight federal funds rate by 0.25 percentage point, with the target range now at 3.75% to 4%. Fed Chair Kevin Warsh said inflation remains too high, and policymakers indicated another rate hike could come later this year.