A cyclist passes the New York Stock Exchange in New York on May 26, 2020.
Wang Ying | Xinhua News Agency | fake pictures
US stock futures rose Wednesday night after a session in which the main averages posted solid gains as the Federal Reserve pledged to maintain current stimulus measures.
Dow Jones Industrial Average futures were up 18 points, or 0.1%. S&P 500 futures gained 0.1% and Nasdaq 100 futures advanced 0.2%.
The Fed kept the rate overnight in the United States in a range between 0% and 0.25%. The central bank noted that while the economy has recovered slightly, activity and employment remain “well below their levels at the beginning of the year.” Fed President Jerome Powell added that the central bank will remain accommodative until the economy has “resisted” the effects of the coronavirus pandemic.
“Powell made it clear that our economic recovery depends on how we progress in the fight against the pandemic,” said Mike Loewengart, managing director of investment strategy at E-Trade. “While rising virus cases may not deter investors, the stock market is less important to the Federal Reserve than the economy, and while the two are related, they are far from the same.”
Both the S&P 500 and Nasdaq Composite closed more than 1% on Thursday. The Dow rose 160.29 points, or 0.6%.
The main averages were also boosted by earnings from big tech stocks like Facebook, Amazon Alphabet and Apple. All four actions ended more than 1% on the day, even as their respective CEOs testified before Congress, addressing antitrust concerns.
All four companies are slated to report earnings the Thursday after the bell. Those reports come after each stock has posted massive gains so far this year. Facebook and Alphabet were up more than 13% in 2020. Amazon was up 64.2% at the time and Apple was up 29.5% this year. It will also be the busiest day of the current earnings season.
“Another round of bullish tech surprises might be enough to fuel the next highest stretch in the post-crash rally,” said Ken Berman of Gorilla Trades.
In economic news, the first reading on second-quarter gross domestic product will launch at 8:30 am ET along with the latest weekly numbers of jobless claims.
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