Dow, S&P 500, Nasdaq futures inch higher, eyeing return to Trump rally

U.S. stock futures rose on Thursday, hoping for a return to the Trump rally, as investors gauged the next president’s likely impact on markets and awaited the Federal Reserve’s policy decision.

Dow Jones Industrial Average futures (YM=F) edged up 0.2% after gaining 1,500 points, marking the blue-chip indicator’s best day since 2022. S&P 500 futures (ES=F) rose about 0.3% and contracts on the tech-heavy Nasdaq 100 (NQ=F) rose 0.4%.

Sentiment still appears to be high following Donald Trump’s victory in the presidential election, which catapulted all three major stock indicators to new record highs on Wednesday. His plans for corporate tax cuts and deregulation have fueled optimism about an economic stimulus that will impact stocks.

However, some on Wall Street see signs of a recovery rally as Trump’s decisive victory also erased worries about a disputed vote. They suggest that stock gains could slow as the euphoria wears off.

The Fed’s interest rate decision later on Thursday – normally a dominant event for markets – is taking a back seat given the election implications.

For one thing, investors see a 25 basis point rate cut as a fairly safe bet at the end of policymakers’ two-day meeting. Instead, the focus is on what Chairman Jerome Powell might reveal about the future path of policy, especially as Trump’s return could cause interest rates to stay higher for longer.

On the corporate front, Arm Holdings (ARM) shares fell 6% in premarket trading as the chip designer’s revenue forecast dashed Wall Street’s hopes for stronger AI-powered growth. In contrast, shares of rival Qualcomm (QCOM) rose 6% after its revenue and profit outlook beat estimates.

Quarterly results from Warner Bros. Discovery (WBD), Hershey (HSY) and Moderna (MRNA) are the highlights of Thursday’s earnings list.

Meanwhile, Trump Media & Technology Group (DJT) stock continued to recover from the big surge that followed the election results. Shares of the company – home of Trump’s social media platform Truth Social – fell over 14% early Thursday.