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Futures up: Dow 0.69%, S&P 500 0.86%, Nasdaq 1.05%

Sept 18 (Reuters) - U.S. stock index futures gained on

Thursday, with those tied to the S&P 500 and the Nasdaq at

record highs a day after the U.S. central bank delivered a

quarter-point interest rate cut, its first this year.

After the highly expected cut, Federal Reserve Chair Jerome

Powell said that the softening jobs market was a priority for

the central bank, indicating more reductions could follow at its

October and December meetings.

Investors are pricing in 44.6 basis points in cuts by

end-2025, implying nearly two quarter-point cuts, data compiled

by LSEG showed.

Powell, however, tempered aggressive easing expectations of

market participants, saying the cut was a risk-management move

and the central bank did not need to move quickly on rates,

leading the S&P 500 and the Nasdaq to close lower on Wednesday.

AI chip giant Nvidia ( NVDA ) also weighed on Wednesday

after a report said Chinese tech firms might stop buying its

chips. The stock was 2.3% higher in Thursday's premarket

trading.

Futures tied to the small-cap Russell 2000 index

gained 1.5%, as these companies are likely to perform better in

a low interest-rate environment.

"Powell referred to this as a 'risk management' cut,

emphasizing this move as a form of insurance against growing

signs of labor market weakness," said Jean Boivin, head of the

BlackRock Investment Institute.

"Any future policy easing would be conditional on data

supporting that a soft labor market is real and persistent."

At 5:30 a.m. ET, Dow E-minis were up 321 points, or

0.69%, S&P 500 E-minis were up 57.25 points, or 0.86%

and Nasdaq 100 E-minis were up 255.25 points, or 1.05%.

Concerns around the independence of the Fed also seemed to

fade as attempts by President Donald Trump's administration to

fire Governor Lisa Cook were unsuccessful and Governor Stephen

Miran, sworn in on Tuesday, was the only dissenter of the move,

calling for a bigger 50 bps cut.

The Fed decision is expected to add to Wall Street's recent

rally, where the S&P 500 and the Nasdaq hit intraday record

highs in multiple sessions, boosted by monetary policy easing

hopes and a revival of AI-linked stock.

The three indexes have gained so far in September - a month

deemed bad for U.S. equities historically - where the S&P 500

has shed 1.4% on average since 2000, data compiled by LSEG

showed.

A weekly reading of jobless claims is due before markets

open.

Among stocks, CrowdStrike ( CRWD ) gained 4.9% after at

least two brokerages raised their price target on the stock.

Nucor ( NUE ) slipped 3.8% after the steel company said it

expected third-quarter profit to decrease across all its three

operating segments.

Nike ( NKE ) was 1.9% higher after RBC upgraded the

sportswear retailer to "outperform" from "sector perform".