<figure id="attachment_3103812" aria-describedby="caption-attachment-3103812" style="width: 1600px" class="wp-caption aligncenter"><img loading="lazy" class="wp-image-3103812 size-full" src="https://media.freemalaysiatoday.com/wp-content/uploads/2025/07/76ecbdaf-12444443_1600x1000_1.webp" alt="" width="1600" height="1000" /><figcaption id="caption-attachment-3103812" class="wp-caption-text">Dow E-minis were up 0.69%, S&amp;P 500 E-minis were up 0.86% and Nasdaq 100 E-minis were up 1.05%. (EPA Images pic)</figcaption></figure>
NEW YORK: US stock index futures gained today, with those tied to the S&amp;P 500 and the Nasdaq at record highs a day after the US central bank delivered a quarter-point interest rate cut, its first this year.
After the highly expected cut, Federal Reserve chair Jerome Powell said that the softening jobs market was a priority for the central bank, indicating more reductions could follow at its October and December meetings.
Investors are pricing in 44.6 basis points in cuts by end-2025, implying nearly two quarter-point cuts, data compiled by LSEG showed.
Powell, however, tempered aggressive easing expectations of market participants, saying the cut was a risk-management move and the central bank did not need to move quickly on rates, leading the S&amp;P 500 and the Nasdaq to close lower yesterday.
AI chip giant Nvidia also weighed yesterday after a report said Chinese tech firms might stop buying its chips.
The stock was 2.3% higher in yesterday&#8217;s premarket trading.
Futures tied to the small-cap Russell 2000 index gained 1.5%, as these companies are likely to perform better in a low interest-rate environment.
&#8220;Powell referred to this as a &#8216;risk management&#8217; cut, emphasising this move as a form of insurance against growing signs of labor market weakness,&#8221; said Jean Boivin, head of the BlackRock Investment Institute.
&#8220;Any future policy easing would be conditional on data supporting that a soft labor market is real and persistent,&#8221; Boivin said.
At 5.30am, Dow E-minis were up 321 points, or 0.69%, S&amp;P 500 E-minis were up 57.25 points, or 0.86% and Nasdaq 100 E-minis were up 255.25 points, or 1.05%.
Concerns around the independence of the Fed also seemed to fade as attempts by President Donald Trump&#8217;s administration to fire governor Lisa Cook were unsuccessful and governor Stephen Miran, sworn in on Tuesday, was the only dissenter of the move, calling for a bigger 50 bps cut.
The Fed decision is expected to add to Wall Street&#8217;s recent rally, where the S&amp;P 500 and the Nasdaq hit intraday record highs in multiple sessions, boosted by monetary policy easing hopes and a revival of AI-linked stock.
The three indexes have gained so far in September &#8211; a month deemed bad for US equities historically &#8211; where the S&amp;P 500 has shed 1.4% on average since 2000, data compiled by LSEG showed.
A weekly reading of jobless claims is due before markets open.
Among stocks, CrowdStrike gained 4.9% after at least two brokerages raised their price target on the stock.
Nucor slipped 3.8% after the steel company said it expected third-quarter profit to decrease across all its three operating segments.
Nike was 1.9% higher after RBC upgraded the sportswear retailer to &#8220;outperform&#8221; from &#8220;sector perform&#8221;.

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