US futures point to further gains as Fed lifts markets

Stocks on Wall Street were poised to build on a record high on Thursday as relieved investors continued to celebrate the Federal Reserve's signals that it will delay interest rate cuts but not slow them.

S&P 500 futures (^GSPC) rose 0.3%, pulling away from the index's first ever close above 5,200. Dow Jones Industrial Average (^DJI) futures rose 0.2%, while the tech-heavy Nasdaq 100 (^NDX) rose 0.6%.

Stock indexes finished at all-time highs after the Federal Reserve allayed investor fears that upcoming cuts in borrowing costs will be shallower than expected. Policymakers stuck to their expectations for three interest rate cuts in 2024, despite sticky inflation data that may have led to a reduction in monetary easing.

A sea of ​​green for stocks around the world followed the “dot plot” forecast and Chairman Jerome Powell's unfazed by the Fed reaching its inflation target. Gold (GC=F) jumped to a record high above $2,200 an ounce.

With six weeks to go until the next Fed policy meeting in May, the focus is now likely to be on other movers for stocks. While hopes for the growth of artificial intelligence have provided a boost to the technology, there have been signs of a broadening market recovery.

Read more: What the Fed's interest rate decision means for your money

Elsewhere, the Swiss National Bank stole a march on the Federal Reserve by cutting interest rates on Thursday. The surprise move made it the first central bank to withdraw, and was seen as boosting confidence that tightening had peaked in leading economies.

On the corporate front, Reddit Inc (RDDT) is preparing to make its debut on the New York Stock Exchange on Thursday. The social media platform priced its IPO at the high end of a $31 to $34 range at a valuation of $6.4 billion.

Among the top movers, Micron ( MU ) shares jumped more than 18% premarket following the memory chip maker's strong current-quarter revenue outlook amid demand for its AI hardware.