Time for the Santa rally? U.S. stock market futures extend post-Fed swing higher
U.S. stock futures pointed to further gains Thursday, extending the rise that was seen after the Federal Reserve interest-rate decision.
Analysts said the Fed was, if anything, hawkish in its forecasts for interest-rate hikes in 2022 and 2023 as it increased the pace of the bond purchase taper.
“Based on asset price moves during the meeting and after, fear ahead of the FOMC meeting was probably even more exaggerated than we thought,” said Steve Englander, head of global G10 currency research and North America macro strategy at Standard Chartered.
“The initial market reaction does not always stick, but we suspect that both the Fed and investors are satisfied that the Fed is aware of and responding to inflation risks, while taking a measured, data-dependent approach in responding,” said Englander.
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