Dow, S&P 500, Nasdaq futures rise after Fed lowers rates, signals more cuts ahead
US stock futures rose after the Federal Reserve cut interest rates for the first time this year. Policymakers lowered rates by a quarter percentage point, bringing its benchmark interest rate to a range of 4%-4.25%.
Futures attached to the Dow Jones Industrial Average (YM=F) and the benchmark S&P 500 (ES=F) rose 0.3%. Futures attached to the tech-heavy Nasdaq 100 (NQ=F) jumped 04%.
Stocks wobbled on Wednesday following the widely anticipated decision. In addition to lowering rates, the Fed indicated via its “dot plot” release that policymakers expect two more interest cuts to land this year. However, Fed Chair Jerome Powell’s comment that high inflation and a weak labor market leave “no risk-free path” shook confidence that the central bank can deliver additional cuts smoothly.
Meanwhile, President Trump visited the United Kingdom and dined with tech and finance executives at Windsor Castle.
Trump and Prime Minister Keir Starmer are set to meet on Thursday amid efforts to nail down deals on tech, energy, and digital assets. In particular focus for the US and the UK is boosting ties in AI, with Microsoft (MSFT) and Nvidia (NVDA) pledging to partake in investments.
Also on Thursday, investors will receive another pulse check on the labor market with the release of weekly jobless claims. Finally, FedEx (FDX) will report its earnings after the bell.
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Stock market coverage for Thursday, September 18, 2025.