Market Brief: Wall Street Rebounds Led by Tech, BOJ Raises Rates
US equities rebounded sharply following the Fed's rate hike, driven by tech strength and positive index futures. In Asia, the Bank of Japan raised its policy rate to 1.25%, its highest level since 1995.
Reviewed by Tom · Trader & founder of OrderFlowFutures
US Indices Rebound and Tech Momentum
Following the Federal Reserve's decision to raise its benchmark rate by 25 basis points to 3.75%-4%, US markets experienced a relief rally. The Nasdaq led gains with a +1.69% rise to 26,418.30 points, while the S&P 500 added +1.14% to 7,637.76 points and the Dow Jones advanced +0.61% to 51,778.04 points.
The movement was driven by megacap tech stocks. Nvidia rose +2.54%, boosted by CEO Jensen Huang's statement that the company expects to double its AI chip sales next year. Amazon (+2.13%) and Cisco (+2.32%) also contributed to the upside as oil prices pulled back. Index futures continued higher, with Nasdaq 100 futures up 212 points and S&P 500 futures gaining 30 points (+0.4%).
Central Banks: BOJ Hikes, BoE Under Watch
- Bank of Japan (BOJ): The BOJ raised its overnight call rate by 25 basis points to 1.25% (7-2 vote), reaching its highest level since 1995. The central bank highlighted inflation moving closer to its 2% target, citing AI demand and Middle East conflict as inflationary risks.
- Bank of England (BoE): Following September's rate hold at 3.75%, Barclays now projects two 25-basis-point rate hikes in November and February, pointing to Middle East tensions and risks of inflation exceeding 4% by early 2027.
To Watch Today
- US Equity Futures: Bullish momentum on NQ and ES futures ahead of the US cash open.
- Inflation and Geopolitical Risks: Ongoing impact of energy prices and Middle East conflicts on central bank rate trajectories.
Brief compiled from the morning's news flow, AI-assisted and reviewed by the team. Not investment advice.