U.S. stock futures fell Wednesday night after a major averaging show as the Federal Reserve pledged to maintain current stimulus measures.
Dow Jones Industrial Average’s futures slid 34 points or 0.1%. The Futures S&P 500 and Nasdaq 100 also traded slightly lower.
The Fed kept the overnight rate in the US between 0% and 0.25%. The central bank noted that while the economy was recovering slightly, activity and employment remained “well below the level at the beginning of the year”;. Fed Chairman Jerome Powell added that the central bank would maintain an accommodative stance until the economy “reversed” the effects of the coronavirus pandemic.
“Powell has said it out loud and clear that our economic recovery depends on how we progress in the fight against the pandemic,” said Mike Loewengart, CEO of E-Trade Investment Strategy. “While investors may not be discouraged by the rise in viral cases, the stock market is not focused on the Fed as an economy – and although they are linked, they are far from the same.”
The S&P 500 and Nasdaq Composite closed more than 1% higher on Thursday. The Dow rose 160.29 points, up 0.6%.
Major averages have also boosted profits from major technology stocks such as Facebook, Amazon Alphabet and Apple. All four stocks ended the day by more than 1%, although they were denounced by the relevant CEOs before Congress regarding antitrust concerns.
Four companies are set to report a profit Thursday after the bell. These reports come after each of the stocks recorded huge annual profits. Facebook and the alphabet are higher than 13% in 2020. Amazon grew 64.2% at the time, and Apple grew 29.5% this year. It will also be the busiest day of the current earning season.
“Another round of bullish technical surprises could be enough to jump another foot higher in the post-crash rally,” said Ken Berman of Gorilla Trades.
In economic reports, the first reading of gross domestic product in the second quarter is marketed together with the last number of weekly job applications.
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