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Money markets see a 58% chance of the first rate cut of at least
25 basis points (bps) being delivered in September, but have
priced in a greater 69% chance of a cut in November, according
to CME FedWatch tool.
"The Fed's official statement did acknowledge a 'lack of further
progress' in inflation reduction in recent months," Preston
Caldwell, chief U.S. economist at Morningstar, said.
"But Powell expressed the strong belief that current monetary
policy is sufficiently restrictive to return inflation to the
Fed's 2% target eventually ... therefore it's unlikely the next
policy move will be a hike."
U.S. stocks initially rose, but ended mixed on Wednesday after
the Fed decision.
Focus now moves to the key nonfarm payrolls data on Friday for a
clearer outlook on the labor market and the interest rate path.
Investors, on Thursday, will also keep an eye out for weekly
jobless claims due at 8:30 a.m. ET and March factory orders data
at 10 a.m. ET.
Earnings reports from Moderna, Peloton and Cardinal Health,
among others, are scheduled before the opening bell.
Of the 310 companies in the S&P 500 that have reported earnings
as of Wednesday, 77.4% have surpassed earnings estimates,
compared with the historical average of 67%, according to LSEG
data.
At 05:43 a.m. ET, Dow E-minis were up 131 points, or 0.34%, S&P
500 E-minis were up 29.25 points, or 0.58%, and Nasdaq 100
E-minis were up 141.75 points, or 0.81%.
Among early movers, Qualcomm gained 4.7% in premarket trading
after the smartphone chips supplier forecast quarterly sales and
adjusted profit above Wall Street expectations.
E-commerce firm eBay slipped 3.6% as it forecast second-quarter
revenue below estimates on cooling demand.
(Reporting by Shristi Achar A in Bengaluru; Additional reporting
by Shubham Batra; Editing by Shounak Dasgupta)
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