Dow futures climb 367 points: 5 things to know before Wall Street opens

• The Fed raised rates by 25 basis points to 3.75%-4% and signaled another potential increase in October, with markets assigning roughly even odds to that move
• Large-cap tech stocks led the rally, with Alphabet and Meta up more than 1% premarket, while AI infrastructure plays CoreWeave, Nebius, and IREN surged 5-9%
• Fluence Energy plunged 18% after cutting its fiscal 2026 outlook due to supply-chain issues, highlighting that the rally remains selective and companies face punishment when earnings visibility deteriorates

Market Summary: Dow Futures Rise Following Fed Rate Decision

Key Market Movements:

U.S. stock futures rallied Thursday morning, with Dow futures climbing 367 points (+0.7%), S&P 500 futures up 0.8%, and Nasdaq 100 futures advancing nearly 1%. The gains followed Wednesday's weaker close as investors digested the Federal Reserve's rate policy.

Federal Reserve Action:

The Fed unanimously raised its benchmark rate by 25 basis points to a range of 3.75%-4%, marking its first increase in over three years. Policymakers signaled another potential hike this year, with markets pricing in roughly even odds for a quarter-point increase in October.

Commodity and Treasury Markets:

Brent crude fell toward $104 per barrel on easing supply concerns, with reports that Saudi Arabia could restore East-West pipeline capacity within days. The 10-year Treasury yield dropped below 5%, relieving valuation pressure on growth stocks.

Sector Performance:

Large-cap technology led the rebound, with Alphabet and Meta gaining over 1% in premarket trading. AI infrastructure stocks surged, including CoreWeave (+6%), Nebius (+9%), and IREN (+5%). Nebius benefited from reports of price increases for computing services.

Notable Movers:

Fluence Energy plummeted 18% premarket after cutting its fiscal 2026 outlook due to U.S. supply-chain issues and delays at its Houston manufacturing facility.

Market Implications:

Analysts suggest the rally reflects relief that the anticipated Fed decision has passed, rather than celebration of easier policy. Jefferies strategists noted that future S&P 500 gains may depend on AI-driven earnings growth and productivity, though elevated interest rates continue constraining valuation multiples. The selective nature of Thursday's rally indicates investors remain discriminating, rewarding companies with solid growth visibility while punishing those with deteriorating earnings outlooks.