US Stock Futures Signal Gains
Stock index futures rose today after the Federal Reserve’s renewed commitment to retaining rates at low levels tempted investors into venturing into riskier assets. While futures on the S&P 500 added 3.1 points to 1157.90, those on the Nasdaq 100 moved up 4 points to 1932.50. Meanwhile, the Dow Jones Industrial Average gained 30 points.
Although the Fed has retained its interest rates, there are growing expectations that the regulatory body will change its stance towards raising the rates. For today, investors are expecting wholesale-price data for February. They are also looking forward to Federal Reserve Chairman Ben Bernanke and the ex-Fed chairman and current White House adviser Paul Volcker testifying on the issue of bank supervision.
Earlier in the day, jobless claims data was released in the UK. The data reflected an unexpected drop in claims during February, marking the biggest ever monthly fall since November 1997. The news sent the British pound soaring up against the US dollar and the euro.
Overseas markets showed strong reaction to the Fed's decision, with the Nikkei 225 rising 1.2% in Tokyo and the Kospi Composite adding 2.1% in Seoul. Meanwhile, the FTSE 100 gained 0.4% in London.
Read more from Benzinga's Markets.
