Fed cuts rates, stocks rebound swiftly

U.S. stock futures are pointing higher as markets show signs of rebounding on the Fed’s interest-rate outlook.

"The Dow has fallen 1,564 points during its nine-day losing run with nearly half of that coming from UNH, which contributed 761 points to the drop."

Interesting take from @WSJmarkets today.

— Ryan Detrick, CMT (@RyanDetrick) December 18, 2024

Futures are up 0.5% as the blue-chip index looks to break a 10-session losing streak, including a significant 1,100-point drop yesterday. Futures are higher by about 0.7%.

The S&P 500 is up 26.9% YTD and the Fed is about to cut.

I see 7 times they cut with stocks up more (since 1970).

1975 (5 times), 1981, and 1995.

— Ryan Detrick, CMT (@RyanDetrick) December 18, 2024

Yields on the 10-year Treasury note are up at more than 4.5%, gold futures are down almost 1%, and crude oil futures are ticking lower. Investors will focus on weekly jobless claims, second revisions of third-quarter U.S. gross domestic product, and existing home sales for November. Micron Technology stock is down 12% in premarket trading after the memory chip maker and Nvidia partner issued a weak quarterly outlook.

Joining @BloombergTV for #TheClose around 4:10pm ET today to talk today’s Fed meeting and market reaction, etc.

— Liz Ann Sonders (@LizAnnSonders) December 18, 2024

Micron projected fiscal second-quarter revenue of $7.9 billion, give or take $200 million, below the analyst consensus of $8.93 billion compiled by Visible Alpha. While the company foresees a return to growth in the second half of fiscal 2025, it expects consumer-oriented markets to remain weaker in the near term. After falling following the Fed’s announcement, bitcoin is trading above $102,000 Thursday morning.

Fed cuts rates by 25bps, taking upper bound from 4.75% to 4.50% pic.twitter.com/jjW49ipt3d

— Liz Ann Sonders (@LizAnnSonders) December 18, 2024

Fed rate cuts boost investor optimism

It is up about 5% in premarket trading after sinking nearly 10% in the prior session, while crypto exchange Coinbase Global is up 4% after a similar drop yesterday. Bitcoin miners Riot Platforms and MARA Holdings are up about 4% after logging declines of more than 14% and 12%, respectively. Shares of shoemaker Nike are 0.6% higher in premarket trading ahead of its post-close earnings report. Analysts project that Nike will report $12.12 billion in quarterly revenue, a 9% year-over-year decline, and a net income of $968 million, down from $1.6 billion. The apparel maker has faced increased competition from smaller brands both domestically and in other vital markets like China. The report will be the first quarterly result since company veteran Elliott Hill took over as CEO in October. FedEx shares are edging higher in premarket trading as investors anticipate its second-quarter report after markets close. The company is projected to post slightly lower revenue of $22.14 billion but a 3% year-over-year increase in net income to $925.1 million. FedEx has said it plans to complete a review of options for its freight business by the end of the year, and analysts believe that it may “unlock value” if the business is spun off.