Stock Futures Rise After Selloff Prompted by Fed Rate Hike
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- U.S. stock futures rose on the morning of Sept. 17 following a significant market selloff caused by the Federal Reserve raising interest rates by 25 basis points to a range of 3.75 % and 4 %.
- The rate hike, the first since July 2023, was accompanied by signals from Fed Chair Kevin Warsh that persistent inflation would likely prompt another monetary policy tightening before the end of the year.
- Major equity indices dropped sharply during the previous session, with bank stocks like Bank of America and Wells Fargo falling 3 %, while futures markets subsequently pointed to a modestly higher open.