U.S. stock futures rise after rate hike

S&P 500 Futures gained 0.48% to 7,659.0 points, Nasdaq 100 Futures added 0.67% to 29,446.50 points, while Dow Jones Futures advanced 0.50% to 52,175.0 points

U.S. stock index futures rose on Thursday evening, with the stock market eying some recovery after the central bank hiked interest rates for the first time in three years.

S&P 500 Futures gained 0.48% to 7,659.0 points by 00:05 GMT. Nasdaq 100 Futures added 0.67% to 29,446.50 points, while Dow Jones Futures advanced 0.50% to 52,175.0 points.

Gains in Nasdaq futures pointed to a sharp rebound in technology stocks, with the progress of a bill aimed at regulating data centre power costs also providing some support.

Among notable aftermarket movers, Snap Inc gained 2.5% after it said it will partner with NVIDIA Corporation, Amazon.com Inc, and Salesforce Inc to bring its augmented reality glasses to the enterprise market.

Generac Holdings Inc rallied over 30% after Amazon was granted warrants to buy up to $340 million worth of stock in the company as part of a power supply deal.

Wall Street indexes slid on Wednesday after the central bank hiked rates by 25 basis points to 4.0%. The move was the central bank’s first hike in three years.

Central bank Chair Kevin Warsh struck a hawkish tone in his post-meeting remarks, warning that inflation still remained “too high,” and that financial conditions were not restrictive enough.

While Warsh did not provide forward guidance, his comments were widely interpreted as hawkish, given that a concentrated effort to bring down inflation is likely to entail higher interest rates.

Higher rates bode poorly for stock market, especially for the tech sector that has driven a bulk of equity gains in recent years.