U.S. stock index futures rose on Thursday, a day after the Federal Reserve surprised investors and economists by keeping its stimulus measures intact.
U.S. Federal Reserve defied market expectations on Wednesday by postponing a wind-down of its massive monetary stimulus, saying it would wait for more evidence of solid economic growth. The Fed will continue, for now, with its $85-billion monthly bond purchases which have propped up economic growth and equity markets for much of the year.
The news boosted global equity markets, including European shares, which were on track for their highest close in more than five years. The FTSEurofirst 300 .FTEU3 was up 0.9 percent at 1,270.25 points, around its highest since mid-2008.
Southeast Asian stocks and currencies also surged as investors returned to emerging markets in droves after the Fed’s decision.
“Yesterday’s decision was a big shock to the market and for now, the positive sentiment is intact,” said Peter Cardillo, chief market economist at Rockwell Global Capital in New York. “Maybe next week the market will digest more information and realize that tapering is not exactly off the table.”
S&P 500 futures rose 5 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures rose 58 points, and Nasdaq 100 futures added 8.25 points.
Weekly jobless claims data will be released at 8:30 a.m. EDT (1230 GMT). Analysts in a Reuters survey expect claims to have risen to 330,000, from the previous week’s 292,000. Existing home sales data is due at 10:00 a.m. (1400 GMT).
In company news, Rite Aid Corp (RAD.N), the third-largest U.S. drugstore chain, raised its profit forecast for the current year after reporting a fourth straight quarterly profit. The stock jumped 13 percent to $4.18 in premarket trading.
Priceline Com Inc (PCLN.O) could be in the spotlight after its shares hit $1,000 on Wednesday, the first S&P 500 stock to hit that level. The stock was unchanged in premarket trading.
U.S. and UK regulators are expected to announce a civil settlement as soon as Thursday of their investigations into JPMorgan Chase & Co’s (JPM.N) “London Whale” derivatives loss, according to a source familiar with the matter.
On Wednesday, the Dow Jones industrial average and S&P 500 indexes climbed to all-time highs after the Fed announcement.
REUTERS
