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Fed Rate Path Drives Mixed Premarket Action for US Equity Futures
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Fed Rate Path Drives Mixed Premarket Action for US Equity Futures
Jun 13, 2024 6:32 AM

09:06 AM EDT, 06/13/2024 (MT Newswires) -- US equity futures were mixed ahead of Thursday's opening bell after Federal Reserve officials kept the benchmark lending rate unchanged.

Dow Jones Industrial Average futures slipped 0.2%, S&P 500 futures gained 0.2%, and Nasdaq futures were up 0.7%.

On Wednesday, the central bank's Federal Open Market Committee held interest rates steady at 5.25% to 5.50%, while indicating only one possible rate cut in 2024 compared with the three indicated in March.

Oil prices were lower, with front-month global benchmark North Sea Brent crude down 0.4% at $82.30 per barrel and US West Texas Intermediate crude down 0.5% at $78.14 per barrel, after government data showed a 3.7 million-barrel weekly increase in US crude stockpiles.

New unemployment claims, released at 8:30 am ET, rose to 242,000 in the week ended June 8 from 229,000 in the preceding week, compared with estimates compiled by Bloomberg for a drop to 225,000. Producer prices fell 0.2% in May following a 0.5% increase in April, compared with estimates for a 0.1% uptick.

In other world markets, Japan's Nikkei closed 0.4% lower, Hong Kong's Hang Seng ended 1% higher, and China's Shanghai Composite finished 0.3% lower. Meanwhile, UK's FTSE 100 declined 0.3% and Germany's DAX index fell 1% in Europe's early afternoon session.

In equities, shares of Tesla (TSLA) were 7% higher pre-bell after CEO Elon Musk said company shareholders were voting in favor of his $56 billion pay package and a plan to move the firm's headquarters to Texas. Broadcom ( AVGO ) shares rose 14% after the company reported fiscal Q2 results that topped analysts' estimates and lifted its 2024 revenue guidance.

On the losing side, Dave & Buster's (PLAY) shares fell more than 7% after reporting lower fiscal Q1 adjusted profit and revenue. J.Jill (JILL) shares were down 17% after the company priced a stock offering at $31 per share for total expected gross proceeds of $31 million.

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