This article first appeared on GuruFocus.
Sep 18 – U.S. stock futures gained ground Thursday morning as investors weighed the Federal Reserve’s first interest rate cut of 2025.
S&P 500 futures rose 0.7%, Nasdaq 100 futures added 0.8%, and Dow Jones futures advanced 0.5%. On the bond side, the 10-year Treasury yield slipped 2 basis points to 4.06%, while the 2-year yield edged up to 3.52%.
Wednesday’s trading session ended mixed after the Fed lowered its policy rate by 25 basis points to a target range of 4.00%-4.25%. Stephen Miran, who joined the Fed Board of Governors earlier this week, dissented in favor of a larger 50-point cut.
Fed Chair Jerome Powell described the move as a risk management cut, which briefly pressured equities before markets stabilized. Analysts at Deutsche Bank noted the decision showed unusual unity, though the longer-term projections remain divided. UBS strategist Paul Donovan highlighted that a weakening labor market is taking priority over inflation risks, suggesting more cuts could follow.
Investors now turn to Thursday’s economic data, with weekly jobless claims expected at 246,000 and the Philadelphia Fed’s September manufacturing survey projected at 3.0.