US stock index futures advanced on Thursday, buoyed by the Federal Reserve's decision to maintain interest rates and dampen concerns about potential hikes, Reuters reported. The Federal Open Market Committee (FOMC) left rates unchanged on Wednesday, reassuring investors worried about a tightening monetary policy. While Fed Chair Jerome Powell acknowledged persistent inflation delaying an anticipated rate cut, he dismissed the possibility of future rate increases. Money markets currently predict a 55.6 per cent chance of a rate cut by September, with a higher probability, 69 per cent, priced in for November, according to the CME FedWatch tool. The Fed's statement recognised the lack of progress on inflation recently, noted Preston Caldwell, chief US economist at Morningstar. He added However that Chair Powell expressed confidence that current policy will ultimately bring inflation back to the Fed's two per cent target, making a rate hike unlikely. Despite initial gains on Wednesday following the Fed's announcement, major indexes like the S&P 500 and the Nasdaq closed lower. Friday's release of nonfarm payrolls data will be crucial for gauging the labor market's health and its potential influence on future interest rate decisions. Investors will also be monitoring weekly jobless claims data expected at 8:30 AM ET and March factory orders data at 10:00 AM ET for further insights. On the earnings front, positive news continues to emerge. As of Wednesday, 77.4 per cent of S&P 500 companies that have reported earnings have exceeded forecasts, surpassing the historical average of 67 per cent according to LSEG data. This positive trend is reflected in pre-market trading. As of 7:07 AM ET, Dow E-minis were up 0.46 per cent, S&P 500 E-minis were up 0.71 per cent, and Nasdaq 100 E-minis were up 0.93 per cent. Among early movers, Qualcomm jumped 5.2 per cent pre-market after the company's positive sales and profit forecast. Carvana surged 37.1 per cent after exceeding current-quarter sales and core profit expectations.
