Stock Futures Rise as Markets Digest Fed Rate Hike and Inflation Data

Published: September 17, 2026

Stock futures showed a positive trend early Thursday, recovering from a market sell-off triggered by the Federal Reserve's first interest rate hike in three years. Futures tied to the Dow Jones Industrial Average gained 331 points, or 0.64%. S&P 500 futures were up 0.61%, and Nasdaq-100 futures added 0.71%.

Global Market Performance

In Asian markets, Japan's Nikkei 225 rose by 0.46%, and the Topix increased by 0.82%. South Korea's Kospi advanced 0.72%, and the Kosdaq gained 1.11%. However, Hong Kong's Hang Seng index saw a slight dip of 0.73%, and Mainland China's CSI 300 fell by 0.36%. Australia's S&P/ASX 200 edged 0.27% higher.

Key Corporate News

Generac shares surged over 30% in extended trading after Amazon announced it had received warrants to buy up to $340 million of its shares. This deal involves Generac supplying Amazon with backup power generators for its data centers.

In regular trading on Wednesday, the Dow Jones Industrial Average dropped more than 630 points (1.2%), weighed down by financial services stocks. The S&P 500 experienced a marginal decline of 0.5%, while the tech-heavy Nasdaq Composite ended the session slightly lower.

Federal Reserve's Decision and Inflation Outlook

The Federal Reserve implemented a widely anticipated quarter-percentage-point increase to the federal funds rate, bringing the target range to 3.75%-4%. Policymakers indicated the possibility of further hikes this year, with Fed Chairman Kevin Warsh emphasizing persistent high inflation. August's consumer price index reading was 3.4%, and oil prices have surpassed $100 per barrel, contributing to inflationary pressures.

Economists are debating whether this hike is a one-off or the start of a more aggressive tightening cycle. Concerns linger that elevated oil prices, exacerbated by Middle East conflict, could keep inflation high. Experts advise the Fed to allow time for the current rate hike to take effect before considering additional measures, citing the potential impact on consumers and businesses already facing increased borrowing costs.

Upcoming Economic Data

Investors are now looking ahead to Thursday's economic data releases for further insights into the economy's health. Weekly jobless claims data is scheduled for release at 8:30 a.m. ET. Additionally, August's housing starts report will provide a gauge of how rising borrowing costs are affecting the residential construction sector.

Bank of England's Stance

In a separate development, the Bank of England is expected to maintain its interest rates unchanged on Thursday, despite inflation significantly exceeding its 2% target. This decision would contrast with the recent moves by the U.S. Federal Reserve and the European Central Bank, which have both raised rates. The Bank of Japan is also anticipated to consider a rate hike later in the week.

Treasury Markets

Treasury yields remained relatively stable on Thursday following the Fed's rate hike. The 10-year Treasury yield hovered around 5.002%, the 30-year yield was flat at 5.348%, and the 2-year yield saw a slight decrease of 1 basis point to 4.715%. President Donald Trump reiterated his call for lower interest rates, advocating for rates of 1% or less.

Oil Prices

Oil prices continued their decline as concerns over supply disruptions eased. Saudi Arabia is reportedly making additional crude available through ship-to-ship transfers, helping to mitigate the impact of pipeline attacks on global supplies. Brent futures were slightly lower at $105.81 per barrel, while U.S. crude oil traded down 0.22% at $102.14 a barrel.

Microsoft Dividend

Morgan Stanley highlighted Microsoft's attractive total return prospects following an 8% increase in its quarterly dividend. The firm maintained an 'overweight' rating on the stock, with a price target suggesting significant upside potential.