Source: Sharecast
As of 1230 BST, Dow Jones futures were up 0.61%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.75% and 0.95% firmer, respectively.
The Dow closed 260.42 points higher on Wednesday after the Federal Reserve voted to lower interest rates by one-quarter of a percentage point, and pointed to a further two cuts before the end of the year.
However, FOMC chairman Jerome Powell tempered expectations for a prolonged rate-cutting cycle, describing the latest move as "risk management" rather than the start of an aggressive easing path. Policymakers now anticipate making two additional cuts in 2025, but only one in 2026, falling short of market expectations for as many as three reductions next year.
Rostro's Joshua Mahony said: "The Fed struck a cautious tone at yesterday's FOMC meeting, leaving markets to weigh up the potential pathway for rates against the backdrop of a highly divided committee. Of the 19 officials, nine still anticipate two more rate cuts this year, while six see no further easing. While this underscores the divisions in the Fed, market expectations for an additional two rate cuts this year have bumped up from 70% to 85% in response. Things are less optimistic for 2026, with the Dot plot signalling a mere single cut for next year – well below the three priced by markets.
"If anyone questioned the Fed's independence of late, Jerome Powell made sure to push back with his claim that the central bank doesn't 'feel the need to cut quickly'. His cautious approach in the face of recent job market weakness does serve to highlight that this current period of easing takes place against a backdrop of rising concerns around the inflation element of the dual mandate. While the pace of easing remains uncertain in the medium term, the fact we are seeing rate cuts at a time of record high US equity markets does provide the basis for optimism that the bulls will remain in charge for some time yet."
On the macro front, weekly jobless claims data from the Labor Department will be released at 1330 BST, as will the Philadelphia Fed's September manufacturing survey.
In the corporate space, Cracker Barrel shares fell more than 9% in pre-market action after the restaurant chain missed fourth-quarter earnings forecasts at $0.74 per share. Revenues, however, beat expectations at $868m, versus a consensus of $855m.
Still to come, FedEx and Lennar will report earnings after the close.
Reporting by Iain Gilbert at Sharecast.com
