FX.co ★ US Futures Rise After Fed-Driven Selloff

US stock futures edged higher on Thursday, rebounding after the major averages declined in the previous session following the Federal Reserve’s first interest rate increase in three years. Dow futures were up 0.2%, while S&P 500 and Nasdaq 100 futures rose 0.3% and 0.5%, respectively.

On Wednesday, the Dow fell 1.21%, pressured by losses in financial services stocks. The S&P 500 and Nasdaq Composite also retreated, losing 0.45% and 0.01%, respectively, and surrendering gains posted earlier in the session.

As widely anticipated, the Fed raised its benchmark interest rate by 25 basis points to a range of 3.75%-4% and signaled that another increase is likely before year-end. The central bank is aiming to rein in inflationary pressures at a time when oil prices have climbed above $100 per barrel.

In corporate news, shares of Generac surged 33% in extended trading after Amazon obtained warrants to buy up to $340 million worth of Generac stock under an agreement for Generac to supply backup power generators to Amazon’s data centers.