Dow futures jump 315 points as tech stocks rebound

On Thursday, Dow futures rose 315 points as US stock futures gained and technology shares recovered after the Federal Reserve signalled a tougher stance on inflation. S&P 500 futures increased 0.83% and Nasdaq 100 contracts climbed 1.32% ahead of Friday’s Juneteenth market holiday.

Traders bought back into equities following Wednesday’s sell-off after the Fed’s policy update. The central bank left interest rates unchanged but projected the possibility of higher rates later in the year. Markets now put about a 50% chance on a 25-basis-point rate increase in September, up from roughly 27% the day before, according to CME FedWatch figures.

Intel led pre-market gains, jumping about 9.3% after President Donald Trump said Apple would work with Intel to design and manufacture chips in the United States. The comment drew attention to efforts to rebuild domestic semiconductor capacity and to Intel’s effort to expand its foundry business against competitors such as Taiwan Semiconductor Manufacturing Co.

Other chip-related names rose as well, though the advance appeared selective rather than broad-based.

Crude oil fell to more than a three-month low after the United States and Iran released the text of an interim agreement intended to extend a ceasefire and allow talks to a final deal. Lower energy prices can reduce inflationary pressure and support consumer spending.

May retail sales increased more than expected, led by higher spending on autos and gasoline. The report suggested the consumer is slowing only gradually.

Smith & Wesson shares rose after the company reported stronger quarterly sales. GameStop attracted investor interest as traders rotated into high-beta retail names.

Monetary policy remained a restraint on market sentiment. Fed Chair Kevin Warsh stressed the need to bring inflation under control and policymakers’ projections included the possibility of higher rates later this year. Mark Haefele, chief investment officer at UBS Global Wealth Management, noted: “The combination of a new chair regime, hawkish projections, and a wide dispersion of views implies a higher bar for near-term action in either direction.”

Trading volumes were expected to be lighter ahead of the Juneteenth holiday, which could leave markets more sensitive to headlines. Traders reported bargain hunting after the prior session’s drop, with some investors returning to the recent equity rally despite elevated rate risks.