Nasdaq futures jump 137 points: 5 things to know before Wall Street opens

• Bank of Japan raised rates to 1.25% (highest since 1995), but the yen weakened to 158 per dollar on cautious guidance, potentially affecting the $2.5 trillion in US assets held by Japanese investors.
• Oil retreat (Brent to $102.60, WTI below $100) relieved pressure on growth stocks after this week's spike had pushed 10-year Treasury yields above 5%.
• Xenon Pharmaceuticals plunged 28% premarket after pausing depression trial enrollment due to neurological and psychiatric side effects, while quarterly derivatives expiry could amplify Friday's volatility.

Market Summary: Pre-Market Update (September 18, 2026)

Key Market Movements:

Nasdaq 100 futures surged 137 points (+0.6%), leading pre-market gains, while S&P 500 futures rose 0.3% and Dow futures advanced 0.2%. This follows Thursday's strong session where the Nasdaq climbed 1.7% after investors digested the Federal Reserve's first rate hike in over three years.

Critical Developments:

1. Oil Price Decline: Brent crude fell to $102.60/barrel and WTI dropped below $100, easing inflation concerns and reducing pressure on long-dated Treasury yields. The 10-year yield, which had crossed 5% earlier in the week, retreated as oil prices stabilized.

1. Bank of Japan Rate Hike: The BoJ raised rates to 1.25% (highest since 1995) in a 7-2 vote. However, the yen weakened to 158 per dollar on cautious forward guidance. This matters significantly as Japanese investors hold approximately $2.5 trillion in US assets, which could face redemption pressure as domestic yields rise.

1. AI Sector Strength: Nvidia gained 1% pre-market, while Alphabet also advanced, reinforcing the AI investment narrative. Goldman Sachs strategist Ben Snider noted strong S&P 500 earnings driven by AI capital expenditure and semiconductor margins, though he expects profit growth to moderate.

1. Quarterly Derivatives Expiry: Friday's simultaneous expiry of major stock and index derivatives contracts could amplify volatility, particularly following the Fed hike during September's challenging market environment.

1. Xenon Pharmaceuticals Collapse: Shares plunged 28% pre-market after pausing enrollment in depression trials due to neurological and psychiatric side effects from azetukalner.

Market Implications: Falling oil prices provide relief to growth stocks by easing inflation fears and reducing discount-rate pressure on long-duration technology names.