On September 17, stock futures rebounded following a market decline. Nasdaq futures rose 1.58%, S&P 500 futures increased 1.21%, and Dow futures climbed over 1%. This recovery occurred after the Federal Reserve raised the federal funds rate by 25 basis points to a target range of 3.75%-4.00% on September 16.
The rate hike, the first since July 2023, caused the Dow Jones Industrial Average to fall 631 points, or 1.21%, to 51,461.90. The S&P 500 dropped 0.45% to 7,551.81, while the Nasdaq Composite remained flat at 25,978.43. The market reaction was driven by Fed projections indicating further potential increases.
Fed data shows 16 of 18 officials expect at least one more rate hike this year, with a median year-end projection of 4.1%. If inflation persists, another 25-basis-point increase could raise the target range to 4.25%. This shift marks a reversal from the rate cuts implemented in late 2025.
Market optimism on September 17 was supported by oil prices falling below $100 per barrel and lower Treasury yields. Additionally, Generac shares rose 27% in premarket trading following a partnership announcement with Amazon, while Nvidia and Amazon also saw gains.
