Dow futures jump 400 points as markets rebound from Fed rate hike
U.S. stock futures rose sharply Thursday, offsetting Wednesday’s losses after the Federal Reserve raised rates for the first time in three years.
U.S. stock futures surged on Thursday, gaining roughly 400 points as traders attempted to claw back losses from Wednesday’s market sell-off triggered by the Federal Reserve’s first rate hike in three years. The Fed’s decision added 25 basis points to the federal funds target range, setting it at 3.75%-4% and hinting at possible additional tightening. The equity rebound was aided by a decline in oil prices, which fell more than 2% after analysts suggested that damage to a Saudi pipeline would not severely curb Middle-Eastern exports.
Brent crude and U.S. crude both slipped, while the 10-year Treasury yield dipped just below 5% and the dollar weakened. UBS Global Wealth Management’s chief investment officer, Mark Haefele, said his team remains positioned for further equity gains amid expected modest volatility. Overseas, Japan’s one outlet and Australia’s S&P/ASX posted modest gains, whereas China’s CSI 300 fell, and European indices were broadly higher. Upcoming U.S. data on jobless claims and housing starts are set to shape market direction later in the day.
Why it matters
The Fed’s rate hike influences borrowing costs, market sentiment and global economic activity.
How the sides frame it
MODERATE AGREEMENTBoth camps report the same basic market move after the Fed hike, but left-leaning coverage presents it as a tentative rebound with mixed reactions, while centrist coverage portrays a stronger surge and highlights trader optimism and an investment-officer quote.
LEFT
Left-leaning coverage frames the story as a tentative market rebound with mixed reactions to inflation and geopolitics.
CENTER
Centrist coverage frames the story as a robust surge as traders claw back losses, emphasizing oil-price relief and investor optimism.
The left emphasises
- futures climbed following the Fed’s first rate hike in three years
- tentative market rebound after earlier declines
- mixed reactions to inflation pressures and geopolitical factors
How this story developed
- Aug 19 Fed officials warn higher rates may be needed if inflation stays elevated
- Sep 6 He said Tehran’s response to US strikes would no longer be “proportionate”, adding that “the Americans have surely realised that the era of ‘proportionate responses’ has come to an end”.
- Sep 7 Iran claimed to have hit an unmanned U.S. vessel in the Strait of Hormuz, which the U.S. dismissed as false.
- Sep 8 Iran announced it will double the price of fuel consumed beyond its quota.
- Sep 8 Iran’s Fars news agency reported an explosion heard in the southern Jask area off the Gulf of Oman and east of the Strait of Hormuz.
- Sep 11 The Bank of Japan is expected to lift its policy rate by 25 basis points next week, reaching 1.25%, and may signal a quicker pace of future hikes if inflation risks rise.
- Sep 11 Asian stock markets fell on Friday, mirroring Wall Street losses, while Brent crude rose above $108 a barrel as geopolitical strains between the United States and Iran intensified.
- Sep 11 Fed minutes revealed a 9‑3 vote to keep rates near 3.6% and a drop in market odds for a September hike to about 67%.
- Sep 11 August US CPI held steady at 3.4% year‑over‑year and core CPI fell to 2.4%.
- Sep 12 Oil prices rose to just below $109 a barrel as Middle‑East tensions escalated.
- Sep 16 The BOJ is now expected to raise its policy rate to 1.25% at the upcoming meeting.
- Sep 16 The Federal Reserve announced a quarter-point increase in its benchmark rate, marking the first hike since the previous administration and the first under Chair Kevin Warsh.
- Sep 16 The Fed announced a quarter‑point increase to its key interest rate.
- Sep 17 Fed increased the federal funds rate by 25 basis points to a 3.75‑4 percent target range in its first hike since 2023, with a 12‑0 vote.
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