On Thursday, S&P Futures experienced a notable increase as investors shifted their focus back to preferred technology stocks, following the Federal Reserve’s decision to lower interest rates and indicate the possibility of further reductions in the future. Futures for the S&P 500 increased by nearly 0.9%, whereas futures for the Nasdaq-100 rose by 1.1%. Futures associated with the Dow Jones Industrial Average increased by 326 points, representing a rise of 0.7%.

Intel experienced a notable increase of approximately 28% in premarket trading following Nvidia’s announcement of a $5 billion investment in the chipmaker aimed at co-developing data center and PC products. Shares of Nvidia experienced an increase of 3%. Other tech shares also rose before the open, with Broadcom, Palantir, and Tesla each higher by more than 1%. Advanced Micro Devices experienced a decline of 5% during this period. The actions come in the wake of a tumultuous trading session on Wednesday, during which the Federal Reserve, as expected, reduced its benchmark interest rate by a quarter percentage point. The Dow Jones Industrial Average was the sole index to record gains, increasing by 260 points, or approximately 0.6%, whereas both the S&P 500 and the Nasdaq Composite concluded the session with losses.

In a news conference subsequent to the decision, Fed Chair Jerome Powell tempered investor expectations regarding a prolonged rate-cutting trajectory for the year, characterizing the recent cut as a measure of “risk management.” Policymakers are anticipating two additional reductions this year, with only one projected for 2026, whereas traders have factored in two to three further cuts for the upcoming year. “The Fed’s 25 basis point cut is a clear signal: the softening labor market and stubborn inflation have compelled policymakers to respond — albeit in a measured manner. “This isn’t a pivot, it’s a measured step,” stated Gina Bolvin. “For investors, this signifies a degree of rate relief, rather than a dramatic shift,” she noted. “The Fed is navigating a delicate balance, and forthcoming inflation and employment data will dictate the next steps.”

Despite Wednesday’s losses, the S&P 500 and the Nasdaq remain on track for weekly gains, with increases of 0.2% and 0.5% during the period, respectively. The broad market index is poised for its sixth positive week out of seven, while the tech-heavy Nasdaq is set to achieve its third consecutive positive week. Meanwhile, Wednesday’s increase for the 30-stock Dow positions its week-to-date advance at 0.4%, indicating a potential second consecutive week of gains, should this trend persist.