U.S. stock futures declined on Thursday following the Federal Open Market Committee’s (FOMC) decision on Wednesday. Futures of all four benchmark indices were lower in premarket trading.

On Wednesday, the stocks advanced after Federal Reserve Chairman Jerome Powell announced that the inflation caused by President Donald Trump’s tariffs would be “transitory” in nature. Furthermore, the “dot plot” projected two rate cuts in 2025, maintaining the Fed’s initial forecast.

The 10-year Treasury yield stood at 4.22%, while the two-year yield was at 3.97%. According to the CME Group's FedWatch tool, there is an 82.6% chance that the Federal Reserve will keep the interest rates unchanged during its May meeting.

The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Thursday. The SPY was up 0.29% to $568.76, and the QQQ advanced 0.40% to $482.80, according to Benzinga Pro data.

Cues From The Last Session

Energy, technology, and consumer discretionary sectors led a broad rally on Wednesday, propelling the S&P 500 index. This surge occurred alongside the Federal Reserve’s decision to maintain interest rates.

Despite projecting two 2025 rate cuts, the Fed’s dot plot now signals lower growth and higher inflation, sparking stagflation worries.

Notably, Nvidia Corp. (NASDAQ:NVDA) rebounded 1.8% after its CEO’s address, and Boeing Co. (NYSE:BA) soared nearly 7% on delivery and cash flow improvement plans. Meanwhile, mortgage applications declined, but all S&P 500 sectors closed positively.

As of Wednesday, the Nasdaq 100 remains in correction territory, having fallen 11.19% from its prior peak. Similarly, the Dow Jones and S&P 500 have dropped 6.70% and 7.68%, respectively, from their 52-week highs.

Insights From Analysts

Market volatility, driven by tariff uncertainties and federal job cuts, has created a buying opportunity, according to Scott Wren, Senior Global Market Strategist. “The pullback in equities offers an opportunity,” he said.

Despite recent market pullbacks, Wren advises shifting from bonds to equities. He argues that while tariffs and job cuts introduce costs, their impact on the overall economy, particularly the likelihood of a recession, is minimal.

Tariffs, while causing localized price increases, won’t uniformly affect U.S. firms, and federal layoffs represent a small portion of the labor market, with historical data suggesting displaced workers find alternative employment. Wren also notes that tariff revenue and federal budget savings tend to be limited.

He added that strong labor market fundamentals and healthy household finances support continued consumer spending, mitigating recession risks. “We think the economy will grow a little more slowly than in 2024, but the consumer and the labor market look more like their averages of the past 15 years than a prelude to a recession,” he said.

Mohamed El-Erian, a prominent economist, criticized the Federal Reserve’s recent communication, citing their past error in labeling inflation as “transitory.” He believes the Fed should be more cautious, especially given their previous misjudgment and current economic uncertainties.

See Also: How to Trade Futures

Upcoming Economic Data

Here’s what investors will keep an eye on Thursday:

• The initial jobless claims data for the week ended March 15 and the Philadelphia Fed manufacturing survey data for March will be out by 8:30 a.m., ET.

• February’s existing home sales and U.S. leading economic indicators data will be released by 10:00 a.m., ET.

Stocks In Focus:

• Accenture Plc. (NYSE:ACN) was down 0.30% in premarket on Thursday ahead of its earnings before the opening bell. Analysts expect earnings of $2.82 per share on revenue of $16.62 billion.

• Jabil Inc. (NYSE:JBL) advanced 0.67% as Wall Street expects it to report earnings of $1.83 per share on the revenue of $6.41 billion before the opening bell.

• Micron Technology Inc. (NASDAQ:MU) rose 0.73% ahead of its earnings after the closing bell. Analysts expect earnings of $1.42 per share on the revenue of $7.89 billion.

• FedEx Corp. (NYSE:FDX) was above the flatline by 0.07% as Wall Street expects it to report earnings of $4.54 per share on the revenue of $21.89 billion after the closing bell.

• Microchip Technology Inc. (NASDAQ:MCHP) dropped 2.29% after announcing an offering of $1.35 billion in depository shares.

• OptiNose Inc. (NASDAQ:OPTN) was 60.83% higher after it canceled its earnings conference call following its acquisition agreement with Paratek Pharmaceuticals

• AGM Group Holdings Inc. (NASDAQ:AGMH) surged 37.22% after it was given 180 by Nasdaq to get its stock price back up to $1.00 for maintaining compliance.

• Virpax Pharmaceuticals Inc. (NASDAQ:VRPX) plunged 12.84% after it announced that it will execute a 1-for-25 reverse stock split on March 20, 2025, with trading on a split-adjusted basis beginning March 21, 2025. This reduces outstanding shares and proportionally adjusts equity awards.

• Zoomcar Holdings Inc. (NASDAQ:ZCAR) slumped 28.45% after it said that it would implement a 1-for-20 reverse stock split on March 21, 2025, with adjusted trading beginning March 24, 2025. This aims to maintain Nasdaq compliance.

Commodities, Gold And Global Equity Markets:

Crude oil futures were trading higher in the early New York session by 0.67% to hover around $67.36 per barrel.

The gold spot index was down by 0.14% to $3,043.20 per ounce. Its last record high was at $3,057.36 per ounce. The Dollar Index was up by 0.32% at the 103.756 level.

Asian markets closed mixed on Thursday with China’s CSI 300, Hong Kong's Hang Seng, and Japan's Nikkei 225 index falling in trade. Whereas, India's S&P BSE Sensex, South Korea's Kospi, and Australia's ASX 200 index advanced. European markets traded lower.

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