Stock futures edged lower on Thursday, giving up some of the gains made after the Federal Reserve reaffirmed its outlook for two interest rate cuts in 2025.
Futures tied to the Dow Jones Industrial Average slipped 137 points (0.3%), while S&P 500 futures fell 0.4% and Nasdaq 100 futures dropped 0.5%. The dip follows a market rally on Wednesday, when the Dow rose 0.9%, the S&P 500 gained just over 1%, and the Nasdaq Composite climbed 1.4%. Despite the bounce, the Nasdaq remains in correction territory, more than 10% off its previous high.
On Wednesday, the Federal Reserve kept its benchmark interest rate within the expected range of 4.25% to 4.5%. However, it reaffirmed its projection for two rate cuts in 2025, despite acknowledging higher inflation and slower economic growth.
Fed Chair Jerome Powell suggested that potential inflationary pressures from tariffs could be short-lived. His comments reassured investors, leading to a recovery in stocks after a sell-off that had persisted since February. The S&P 500, which briefly entered correction territory last week, has since trimmed its losses and is now 7% below its record high.
While Powell’s remarks calmed fears of prolonged inflation, uncertainty remains. Investors are keeping an eye on key economic data, including weekly jobless claims, the Philadelphia Fed’s manufacturing survey, and a report on existing home sales.
In addition, corporate earnings reports from major companies—including Nike, FedEx, and Micron Technology—are due after the closing bell on Thursday, potentially influencing market movements.
Beyond broad market trends, individual stocks have seen notable movement:
- Darden Restaurants shares dropped over 2% in premarket trading after reporting lower-than-expected revenue for the third quarter.
- SharkNinja fell 14% in March, but Bank of America sees this as a buying opportunity, citing strong domestic and international growth potential.
- KKR, which has declined 21% this year, was upgraded by Wells Fargo, citing “too compelling” upside potential.
- JPMorgan upgraded Freeport-McMoRan, expecting tariff-driven pricing benefits for the copper producer.
Meanwhile, SoftBank announced a $6.5 billion acquisition of chip designer Ampere Computing, reflecting its continued investment in AI infrastructure.
Despite the Fed’s steady stance on interest rates, uncertainty remains over US tariff policies. The April 2 expiration of exemptions on certain Canadian and Mexican imports could introduce further market volatility. Some analysts warn that trade tensions could lead to prolonged economic uncertainty.
CNBC, Reuters, and Market Watch contributed to this report.
