On May 26, 2020, the cyclist passes by the New York Stock Exchange in New York.
Wang Ying | Xinhua News Agency Picture of Getty
US stock futures rose on Wednesday night after a session at which key averages showed significant gains when the Federal Reserve pledged to support current stimulus measures.
Average futures on the Dow Jones Industrial rose 18 points, or 0.1%. Futures on the S&P 500 gained 0.1%, and futures on the Nasdaq 100 – 0.2%.
The Fed kept the US rate overnight from 0% to 0.25%. The central bank said that although the economy had recovered slightly, activity and employment remained “significantly lower than at the beginning of the year.” Fed Chairman Jerome Powell added that the central bank will maintain a positive position until the economy “withstands” the effects of the coronavirus pandemic.
“Powell has said loud and clear that our economic recovery depends on how we progress in the fight against the pandemic,” said Mike Lowengart, managing director of E-Trade’s investment strategy. “While investors may not be deterred by the outbreak of viral cases, the Fed’s stock market is less concentrated than the economy, and although they are interconnected, they are far from the same.”
Both the S&P 500 and the Nasdaq Composite closed more than 1% on Thursday. The Dow rose 160.29 points, or 0.6%.
Major averages have also been boosted by earnings from major technology stocks such as Facebook, Amazon Alphabet and Apple. All four actions ended the day at more than 1%, even as their respective leaders testified before Congress addressing antitrust issues.
Four companies plan to report earnings on Thursday after the bell. These reports come after each campaign has published huge annual doomsday. Facebook and Alphabet in 2020 grew by more than 13%. Amazon has grown by 64.2% during this time, and Apple – by 29.5% this year. It will also be the busiest day of the current earning season.
“Another round of bullish technical surprises may be enough to jump-start the next leg higher in the rally after the crash,” said Ken Berman of Gorilla Trades.
In economic news, the first reading of gross domestic product for the second quarter will be released at 8:30 a.m. ET along with the latest weekly numbers of unemployment claims.
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