Stock futures trade higher following Fed’s 25 basis-point rate hike

Yahoo Finance Live’s Brad Smith breaks down how stock futures are trading following the Fed’s most recent rate hike.

Video transcript

[AUDIO LOGO]

JULIE HYMAN: And here are the three things you need to know this morning. According to Fed Chair Jerome Powell, the disinflationary process has started. Does this mean the Fed can complete its current rate hike cycle while also avoiding a severe downturn in the economy? We'll discuss.

BRIAN SOZZI: Meta in focus this morning as shares are soaring premarket, following earnings. Really an impressive call by CEO Mark Zuckerberg, who is aiming to be more efficient in 2023.

BRAD SMITH: That's right. And the NFL's big game is still a week away, but the tech earnings Super Bowl is here. We're going to tell you what to watch. And Apple's earnings, they're going to be in focus as well this afternoon, as well as a few other mega-cap tech stocks.

But first, let's take a deeper dive into what the Fed's comments meant for the markets yesterday here. And we'll give you a view of exactly what took place yesterday on the Dow Jones, and particularly putting it on a chart view so you can actually see what took place there. We'll put it on a two-day view.

And there you're seeing at about that 2:00 PM hour, the move that ensued immediately thereafter. The Nasdaq rallied going into the close, held on to a lot of those gains, and ultimately on the day, closed up by 2%. And over the past two days, in aggregate, that puts us higher by about 3.7%. And you could see, week to date, we are higher by about 2.6% right now.

S&P 500, this was a kind of broad-pace rally but really led by some of those major tech names. So you saw that outsized move in tech. And then the Dow Jones Industrial Average, yeah, that closed higher. It was flat to the upside there.

And in the futures this morning, we'll see exactly where some of that momentum may still be held onto. However, for the Dow futures right now, only up by about 1/10 of a percent here on the day. And then additionally, taking a look at the Nasdaq-100 futures, still seeing a lot of positive momentum there. That's up by about 2%. And then the S&P 500 futures, they are higher by about 1%.