US pre-open: Futures trade higher following Fed decision
By Iain Gilbert
Date: Thursday 23 Sep 2021
(Sharecast News) - US futures were in the green ahead of the bell on Thursday as the Street looks set to attempt to reclaim some of September's losses.
As of 1230 BST, Dow Jones futures were up 0.50%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.56% and 0.59% firmer, respectively.
The Dow closed 338.48 points higher on Wednesday after the Federal Reserve indicated it was anticipating several interest rate hikes in the next three years in its latest policy decision.
The Federal Open Market Committee's definition to stand pat on current near-zero interest rate targets was still in focus prior to the open. The Fed said overnight that it could raise interest rates between six and seven times between now and the end of 2024, and added that it had progressed discussions on reducing its asset purchase programme.
Hong Kong-listed real estate giant Evergrande was also in focus, with investors still unsure if the company, which resolved payment on a local bond, will be able to pay $83.0m in interest on a US dollar-denominated bond due today.
According to the Wall Street Journal, Beijing has warned local authorities to brace for a "possible storm" if Evergrande goes bust.
On the macro front, this week's jobless claims report will be released at 1330 BST, as will the Chicago Fed's August national activity index, while a flash reading of IHS Markit's September manufacturing PMI will follow at 1445 BST and the Conference Board's August leading index will be published at 1500 BST.
In the corporate space, Accenture said first-quarter revenues were expected to beat analyst expectations amid stronger demand for its cloud and security services, while Costco and Nike will both report earnings after the close.
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