Market Jitters Amid Fed's Interest Rate Shift

U.S. stock futures inched up as investors absorbed the Federal Reserve's unexpected interest rate projections. With fewer rate cuts and higher inflation anticipated next year, markets saw a sharp decline. Yet, in premarket trading, key stocks recovered some losses. Corporate updates saw varied performances with Tesla, Nvidia, and Micron in focus.

In a surprising turn, U.S. stock index futures showed positivity on Thursday, rebounding slightly after Federal Reserve forecasts prompted investor uncertainty the previous day.

The Fed's latest statement indicated only two 25 basis point cuts for 2025, contrary to earlier projections, triggering a reactive drop in key stock indices due to concerns over inflation and interest rates in the ensuing fiscal climate under the Trump administration. The S&P 500 neared its lowest point in a month, and the Dow witnessed consecutive declines, the longest since the early 70s. However, on Thursday, futures for major indices emerged into positive territory, with modest gains across the Dow, S&P 500, and Nasdaq.

Amid shifting monetary policy by the Fed, corporate spheres painted a mixed picture. While megacaps like Tesla and Nvidia experienced a premarket uptick, Micron's forecast triggered a 14% dip. Contrarily, cybersecurity company SentinelOne saw shares rise following a favorable Jefferies upgrade.

(With inputs from agencies.)