US stock index futures rose on Thursday, indicating that Wall Street was ready to move on from recent lows, as investors largely brushed off concerns over the Federal Reserve’s plans for tapering.
The Fed said on Wednesday it could begin reducing its monthly bond purchases by November, and that interest rates could be faster than expected by next year. The bank has also forecast inflation at 4.2 per cent by the end of the year, which is more than double its target rate of 2 per cent.
The November time frame was primarily priced by the markets. All three Wall Street indices jumped nearly 1 percent on Wednesday, with relief on the Fed as well as easing of default concerns by Chinese asset developer Evergrande.
The Dow and S&P marked their best day in two months, as they staged a strong recovery from two-month lows earlier in the week.
On Thursday, major banks increased premarket trade on anticipation of a possible hike in interest rates.
The US S&P 500 e-minis were up 26.5 points, or 0.6 percent, at 6:29 a.m. ET. The Dow e-minis were up 185 points, or 0.54 percent, while the Nasdaq 100 e-minis were up 98.75 points, or 0.65 percent.
Major Wall Street indexes are still trading lower for the month, driven by weak seasonal trends as well as concerns over fiscal spending and a slowdown in economic growth.
by Amber Warrick
This News Originally From – The Epoch Times