Dow Jones Today: Stock Futures Rise as Market Looks to Rebound From Fed-Fueled Sell-Off

Stock futures are pointing higher Thursday following a steep downturn yesterday sparked by news that the Federal Reserve expects to make fewer interest rate cuts next year. 

Futures tied to the Dow Jones Industrial Average were up 0.7% in recent trading, while those linked to the S&P 500 and Nasdaq gained 0.9% and 0.8%, respectively. The major indexes posted their biggest one-day losses in four months on Wednesday, as the Dow fell 2.6% to extend its losing streak to ten consecutive sessions, while the S&P 500 and Nasdaq Composite fell 3% and 3.6%, respectively.

The sell-off came after the Fed cut its benchmark rate by a quarter point, as had been expected, but indicated that its policy committee would be taking a cautious approach moving forward as it looks for signs that inflation remains under control. Policy committee members expect two quarter-point cuts in 2025, according to projections released yesterday, down from the four cuts they had penciled in the last time projections were issued in September.

Mega-cap technology stocks were higher across the board in premarket trading, led by AI investor favorite Nvidia (NVDA) and EV maker Tesla (TSLA), which were each up about 3%. Apple (AAPL) , Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META) and Broadcom (AVGO) were also gaining ground.

Shares of chipmaker Micron (MU) tumbled 12% this morning after the chipmaker reported mixed quarterly results and issued a disappointing outlook.

Among other noteworthy post-earnings movers, shares of Olive Garden parent Darden Restaurants (DRI) were up 8%, while consulting giant Accenture (ACN) gained 6%. Shares of Lennar (LEN) were down 8% after the homebuilder released its quarterly results.

The yield on 10-year Treasurys, which is sensitive to expectations about where interest rates are headed, rose to 4.55% this morning, up from 4.50% yesterday and trading at its highest levels since May.

Bitcoin was trading at $102,000, up from an overnight low of around $99,000 but well below the record of over $108,000 set earlier this week. Gold futures were down about 1% at $2,620 an ounce, while crude oil futures were down slightly.