US Stock Futures Rise After Fed Rate Increase as Investors Await Bank of England Decision: Dow Jones, S&P, Nasdaq, Wall Street
US stock futures advanced on Thursday as investors assessed the Federal Reserve’s latest interest-rate increase, the prospect of further monetary tightening and developments affecting global energy supplies.
At 06:59 GMT, Dow Jones futures were up 366 points, or 0.7%, while S&P 500 futures gained 52 points, also 0.7%. Nasdaq 100 futures rose 215 points, or 0.7%.
The gains followed declines on Wall Street in the previous session after the Federal Reserve raised interest rates by 25 basis points, as expected. Updated projections indicated that another increase could follow before the end of 2026.
Analysts at Vital Knowledge described Federal Reserve Chair Kevin Warsh’s subsequent press conference as “net hawkish”, interpreting his comments as an indication that further rate increases remained possible.
The two-year US Treasury yield, which is particularly sensitive to interest-rate expectations, reached its highest level since July 2024 following the announcement.
Federal Reserve Signals Continued Focus on Inflation
Investors examined changes to the Federal Reserve’s September policy statement for indications of its approach to inflation.
The central bank removed earlier language attributing persistent inflation partly to supply shocks and price increases in particular sectors, including energy. Instead, the statement described inflation as “elevated”.
Bill Adams, chief US economist at Fifth Third Commercial Bank, said: “The change emphasizes that the committee is committed to the inflation target and won’t make excuses for missing it.”
Warsh also stressed the importance of preventing price increases in individual sectors from spreading throughout the wider economy.
Adams interpreted the remarks as an indication that higher energy and electronics costs, associated with the Middle East conflict and artificial intelligence investment, would not deter the Fed from pursuing its inflation objective.
However, he cautioned that achieving this objective could prove difficult while diesel prices continued to reach record highs.
Arthur Azizov, chief executive of B2BROKER Group, suggested that the rate increase could support investor confidence in the Fed’s commitment to controlling inflation, despite the potential negative effects of higher borrowing costs on equities.
The decision also places the central bank’s monetary policy at odds with President Donald Trump’s preference for lower interest rates.
Brent Crude Declines as Supply Developments Remain in Focus
Brent crude futures fell on Thursday but remained above $100 per barrel, a level reached earlier in September.
Oil markets continued to assess supply disruptions associated with the conflict in the Middle East.
The Strait of Hormuz remained effectively closed following the start of joint US and Israeli military operations against Iran in late February.
Developments in Yemen have also increased concerns about shipping through the Bab el-Mandeb Strait, which connects the Red Sea and the Gulf of Aden.
Advances by Houthi forces in western Yemen and attacks on a major Saudi Arabian east-west pipeline have added to uncertainty surrounding regional oil exports.
However, Bloomberg reported that Saudi Arabia expected the pipeline to resume operations within days. Oil production in Libya had also returned to normal following the closure of several fields.
Adams identified the energy-price shock as a major source of uncertainty for forthcoming Federal Reserve policy decisions.
Bank of England Expected to Hold Interest Rates
Investors were also awaiting the Bank of England’s monetary policy announcement.
According to a Reuters poll, economists expected the central bank to maintain its Bank Rate at 3.75% for the remainder of 2026 and until at least the middle of 2027.
Respondents generally considered UK inflation insufficient to justify an immediate rate increase. However, continued pressure from energy prices meant that discussions about potential rate cuts were not expected until late 2027.
Deutsche Bank analysts said they expected the Bank of England’s Monetary Policy Committee to remain “relatively cautious compared with some other major central banks.”
The European Central Bank raised interest rates for the second time this year during the previous week and increased its inflation forecasts, citing energy-price pressures associated with the Iran conflict.
Holtec Nuclear Suspends Planned US IPO
In corporate news, Holtec Nuclear suspended its planned US initial public offering on Thursday, citing market conditions.
The Camden, New Jersey-based nuclear technology company had been seeking to raise up to $900 million by offering 50 million shares at a proposed price of $15 to $18 each.
The offering had been expected to price on Thursday.
Holtec said it would continue evaluating the timing of a potential flotation. Bloomberg was the first to report the suspension.
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