On May 26, 2020, a cyclist passes by the New York Stock Exchange in New York.
Wang Ying | Xinhua News Agency | Getty Images
US stock futures fell flat on Wednesday night after a session in which the headline average posted solid gains as the Federal Reserve promised to maintain current stimulus measures.
The Dow Jones Industrial Average Futures dipped 10 points or 0.04%. The S&P 500 and Nasdaq 100 futures also traded around the downtrend.
The Fed overnight kept the US rate in a range between 0% and 0.25%. The central bank noted that while the economy has recovered slightly, activity and employment are “well below their level at the beginning of the year.” Fed chairman Jerome Powell said the central bank would hold an aggressive stance until the economy “ceased” the effects of the coronovirus epidemic.
“Powell made it clear and clear that our economic recovery depends on how we progress in fighting the epidemic,” said Mike Loewengart, managing director of investment strategy at E-Trade. “While virus cases cannot be increased by investors, the stock market tends to be less focused for the Fed than the economy – and while the two are related, they are far from the same.”
The S&P 500 and the Nasdaq Composite both closed more than 1% Thursday. The Dow climbed 160.29 points or 0.6%.
Key averages were also elevated, with gains from large tech stocks such as Facebook, Amazon Alphabet and Apple. All four stocks finished the day over 1%, even as their respective CEOs testified before Congress, addressing antitrust concerns.
After the bells of four companies are slated to report earnings on Thursday. Following those reports, each stock has a large year-over-year gain. Both Facebook and Alphabet are up over 13% in 2020. Amazon grew 64.2% at the time and Apple is up 29.5% this year. It will also be the busiest day of the current earning season.
Ken Burman of Gorilla Trades said, “Another round of fast-moving Tech Surprise may be enough to leap up the next rung in a post-crash rally.”
In economic news, the latest weekly unemployment claims numbers are released, with 8:30 am ET for the first reading on second-quarter GDP.
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