Investing.com - Australian shares are set for an uptick on Thursday as US Federal Reserve policymakers held interest rates steady overnight, while signaling a possible rate cut in September.
ASX 200 Futures were last up by 2.1%, indicating that the index could extend record highs achieved in yesterday's session.
In the US, the Federal Reserve hinted at potential interest rate cuts starting as soon as September, assuming current trends in inflation, employment, and economic growth continue. Federal Reserve Chairman Jerome Powell stated that although rates were held steady, future reductions depend on forthcoming economic data.
All three major US indexes maintained their gains following these announcements from policymakers. The Dow Jones Industrial Average added 0.2%, the S&P 500 gained 1.6% and the NASDAQ Composite lifted 2.6%.
In after-hours deals, Meta Platforms Inc (NASDAQ:META) lifted 6.4% after reporting EPS of $5.16 versus $4.7 expected, while revenues came in at $39.07 billion versus $38.26 billion expected. The company’s major investments in artificial intelligence appear to be paying off, resulting in more targeted and personalised advertisements.
Wall Street’s volatility index dropped by 7.5%, while the yield on the US 10-year Treasury note decreased by 11 basis points to 4.03%.
NVIDIA Corporation (NASDAQ:NVDA) saw a dramatic increase, rising by 12.8%. This surge added a record $329 billion to its market value in a single session, recovering from the 7% dip it experienced the previous day. JPMorgan (NYSE:JPM) contributed to this rally by issuing a bullish outlook on the company.
Oil prices surged after the assassination of a Hamas political chief in Tehran, along with Iran’s supreme leader’s vow for retaliation against Israel. BCA Research raised its odds of a major oil supply shock to 37%. Brent crude increased by 2.8% to $80.72 a barrel in New York, while US crude rose by 5% to $78.49 a barrel.
On the local bond markets, Australian 10-year yields were at 4.14%, while the yield on the 2-year note was at 3.898%.