Fed's Rate Forecasts Shake Wall Street
U.S. stock futures rose as markets reacted to the Federal Reserve's revised projections, indicating fewer rate cuts and heightened inflation expectations in 2025. This shift sent major stock indexes to their lowest points since August, causing investors to adjust risk exposure amid ongoing U.S. economic strength.

U.S. stock index futures gained on Thursday as the investment community absorbed the Federal Reserve's updated interest rate outlook, which suggested fewer rate cuts than previously anticipated alongside an inflationary uptick next year.
The Fed announced on Wednesday its intentions to implement only two 25 basis point cuts in 2025, deviating from its earlier projection and necessitating investors to recalibrate risk strategies amid market turbulence. This announcement propelled the primary U.S. stock indexes to their steepest daily declines in months.
Increased strength in economic metrics and potential inflation under President Trump's next term influenced the Fed's stance. Despite tension, the market regained some stability with notable gains across sectors, although companies like Micron reported dips due to underwhelming forecasts.
(With inputs from agencies.)