US stocks are set to rally on Thursday, with indications pointing toward fresh record highs following the Federal Reserve’s decision to lower interest rates for the first time this year. Market futures reflect this potential upswing, as the Dow Jones Industrial Average futures rose by 0.7%, the S&P 500 futures increased by approximately 0.9%, and the tech-heavy Nasdaq 100 futures led the pack with gains exceeding 1%.
The anticipation of new highs comes in the wake of a previous dip, as investors awaited confirmation of the Fed’s shift toward a more accommodative monetary policy. If the positive premarket gains persist, the S&P 500 is poised to breach the 6,700 mark at the opening bell, having recently closed above 6,600 for the first time on Monday.
This market movement aligns with ongoing discussions on Wall Street regarding the future of Federal Reserve policy. A noticeable slowdown in the labor market has been cited as a contributing factor prompting policymakers to cut rates by a quarter percentage point. The Fed’s latest “dot plot” suggests the possibility of two additional interest cuts before the close of 2025. However, Chair Jerome Powell cautioned that the current environment of high inflation and a weak labor market presents “no risk-free path,” raising questions about the ease of forthcoming cuts.
Investor sentiment may also be influenced by the release of weekly jobless claims figures, which will provide further insight into the labor market’s health. On the corporate front, FedEx is scheduled to report its quarterly earnings after the market closes. Analysts predict that the delivery company’s profits may suffer due to President Trump’s decision to terminate the “de minimus” tariff exemption for low-value direct-to-consumer packages from China and Hong Kong—a category that comprises about three-quarters of duty-free shipments valued under $800 to the US annually.
In international matters, President Trump is currently on a state visit to the UK, where he has dined with technology and finance executives at Windsor Castle. Trump and UK Prime Minister Keir Starmer are expected to meet on Thursday to discuss potential agreements centered around technology, energy, and digital assets, with a particular emphasis on strengthening ties in artificial intelligence. Major tech companies like Microsoft and Nvidia have committed to investing in this sector.
In response to the evolving financial landscape, Moody’s Ratings has identified several risks associated with Oracle’s recently signed contracts worth $300 billion related to artificial intelligence. Despite this warning, the ratings agency opted against any immediate action affecting Oracle’s ratings, and shares for the software giant saw a premarket uptick of approximately 1.5%.
Additionally, Meta’s CEO Mark Zuckerberg recently showcased new AI glasses at the company’s Connect event. While the tech didn’t function flawlessly on stage, it was nevertheless deemed impressive, especially in light of recent criticisms of Apple’s latest iPhone reveal. Analyst Doug Anmuth highlighted this positive sentiment toward Meta.
Meanwhile, Disney’s stock remained stable on Thursday, even after the company’s ABC network indefinitely suspended “Jimmy Kimmel Live!” in response to backlash over comments made concerning the death of Republican activist Charlie Kirk. Nexstar Media’s warning indicated potential withdrawal of the show from its affiliate network, adding pressure to Disney regarding action over Kimmel’s remarks.
On the energy front, oil prices remained steady after the Fed’s anticipated rate cut, as investors speculate that lower borrowing costs might stimulate an increase in demand later in the year.
