US stock futures stabilised on Thursday following a major sell-off on Wall Street the day before.
Dow futures rose over 190 points, or 0.6%, while S&P 500 and Nasdaq futures were up nearly 0.5%.
Tesla surged nearly 2.79% in pre-market trades, offering some relief amid broader market concerns.
Bloodbath in US markets on Wednesday
On Wednesday, the Dow Jones Industrial Average plunged 1,123.03 points, or 2.58%, marking its 10th consecutive day of losses—the longest streak since 1974.
The S&P 500 and Nasdaq Composite also dropped sharply, losing 2.95% and 3.56%, respectively.
The declines were triggered by the Federal Reserve’s revised outlook, which indicated fewer rate cuts in 2025 than initially expected.
The Federal Reserve’s quarter-point rate cut was expected, but its revised projections sparked concern.
The central bank now forecasts only two rate cuts in 2025, down from four previously anticipated.
This change unsettled investors, who had hoped for more frequent rate reductions. The news sent the S&P 500 to its worst “Fed Day” performance in over four years.
The Fed’s decision to scale back rate cuts has created uncertainty about future economic conditions.
With borrowing costs potentially staying high for longer, investors are reassessing their growth and earnings expectations.
As the market reacts to the Fed’s caution, volatility is likely to persist in the coming days.
Investors will be watching upcoming earnings closely for further signs of how companies are adapting to the higher-rate environment.
Asian markets end in gloom after Fed meet
Markets across Asia were facing the brunt on Thursday after the US Fed’s meeting.
China’s Shanghai Composite index fell by 0.36% to 3,370.03 amid rising trade tensions, particularly surrounding the potential US ban on TP-Link routers due to cybersecurity concerns.
Meanwhile, Hong Kong’s Hang Seng index managed to recover from earlier losses, ending 0.56% higher at 19,752.51.
In Japan, markets closed off their lows as the yen weakened and government bonds showed minimal movement after the Bank of Japan chose not to raise interest rates.
The Nikkei declined 0.69% to 38,813.58, while the broader Topix index dropped 0.22% to 2,713.83.
Koran stock market witnessed major fall, with the Kospi falling 1.95% to 2,435.93, led lower by major technology stocks.
Samsung Electronics dropped 3.3%, and SK Hynix fell 4.6%.
Australian markets also faced sharp losses, driven by declines in banks and commodity-related stocks.
The S&P/ASX 200 dropped 1.70% to 8,168.20, while the broader All Ordinaries index closed 1.68% lower at 8,415.
Indian shares dropped sharply on Thursday, extending their losses to the fourth consecutive day.
The benchmark Sensex closed down by 964.15 points, or 1.20%, at 79,218.05.
European markets were also off to a sombre start on Thursday, with major indices opening in the red.
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