Precise Investors Editorial Team
S&P 500 Futures dropped 0.09% to 7.699.75 points, Nasdaq 100 Futures declined 0.17% to 29,694.50 points, and Dow Jones Futures shed 0.09% to 52,173.0 points
U.S. stock index futures fell slightly on Thursday evening, cooling after stock market logged sharp gains on falling oil prices and Treasury yields following an interest rate hike by the central bank.
S&P 500 Futures dropped 0.09% to 7.699.75 points by 23:14 GMT. Nasdaq 100 Futures declined 0.17% to 29,694.50 points, and Dow Jones Futures shed 0.09% to 52,173.0 points.
Futures retreated after a strong session on stock market, which rallied after logging three straight days of losses ahead of Wednesday’s rate hike.
Technology and chipmaking stocks were among the best performers for the day, rebounding from sharp losses earlier this week as markets looked past concerns over slowing artificial intelligence development.
Stock market was in part buoyed by a drop in oil prices, amid some reports of improving flows in the Middle East, even as Saudi-Houthi fighting raged on.
Crude wiped out its weekly gains after reports said Saudi Arabia was shipping more oil to Asian buyers through Oman, helping offset some supply disruptions caused by Houthi aggression in the Red Sea.
Saudi Arabia is also expected to restart its key east-west pipeline, which was shut due to Houthi strikes last week.
But Riyadh continued to clash with Yemen’s Houthis, while the Strait of Hormuz remained closed, keeping a floor under oil prices.
A sharp decline in yields also encouraged stock market, with the 10-year rate slipping below 5% after the central bank hiked interest rates and struck a hawkish chord.
The central bank raised rates for the first time in three years, with Chair Kevin Warsh warning that inflation still remained too high– a scenario that will likely invite more rate hikes.
But yields dropped following the move, given that the hike and the central bank’s outlook helped clear some uncertainty over the path of rates and the U.S. economy.
Wednesday’s decision also reinforced bets that the central bank was acting to bring down inflation and stabilize the economy.
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