Stock futures rebounded early Thursday after a bruising Fed selloff, giving Wall Street a partial reset while traders weighed two competing forces: a hawkish Fed and a sharp drop in oil prices after the U.S.-Iran agreement.
The rebound was not a clean risk-on signal. It looked more like a relief trade after Wednesday's late slide, with investors trying to decide whether cheaper energy can offset a Federal Reserve that is suddenly talking more like a central bank with hike risk.
What happened
MarketWatch and WSJ live-market updates showed U.S. index futures pointing higher on June 18 after the Dow fell 507 points the prior session. The S&P 500 and Nasdaq also dropped more than 1% after the Fed decision.
The same updates showed oil moving lower as investors reacted to the U.S.-Iran deal and potential reopening of the Strait of Hormuz. That gave equity bulls a counterweight to the Fed's tougher tone.
Why stock futures matters
The stock futures rebound matters because it tests whether investors still want to buy dips after policy shocks. If futures hold gains into cash trading, the market can treat Wednesday as a reset. If they fade, the Fed shock is still in control.
Market impact
WSJ reported early Thursday that Nasdaq futures were up 1.4%, S&P 500 futures rose 0.8% and Dow futures gained 0.5%. In the same market window, Brent crude was cited near $77.71 a barrel and WTI near $74.08.
Key numbers
- Dow move Wednesday: down 507 points, according to market reports.
- S&P 500 Wednesday move: down about 1.2%.
- Nasdaq futures early Thursday: up about 1.4%, according to WSJ.
- Brent crude early Thursday snapshot: about $77.71 a barrel.
- Bitcoin early Thursday snapshot in WSJ market coverage: near $63,997.