U.S. stock futures are higher in premarket trading and are rebounding from Wednesday’s sell-off post the Fed rate hike.

As expected, the Fed raised the overnight federal funds rate by a quarter percentage point on Wednesday afternoon, bringing the target range to 3.75%-4%. The Fed also signaled another hike could come this year, with Fed Chairman Kevin Warsh stating that inflation remains too high.

The initial reaction to the hike was muted but selling picked up after the press conference. “The plain fact is that inflation is too high, and has been for too long,” Warsh said during the press conference following the announcement. “This summer’s inflation readings do not tell me that underlying trends have meaningfully improved.”

Also helping equity sentiment today is the more than 2% decline in oil prices to near $100 a barrel, which comes after an over 3% drop on Wednesday. Investor focus today will remain on fallout from the Fed decision along with economic data including Jobless Claims and housing starts.

Snapshot

• Oil (/CL) – Oil futures are down more than 2% to $100.19 per barrel
• Gold (/GC) – Gold futures are down 0.25% to 4,376.6 per ounce
• Bitcoin (/BTC) – The cryptocurrency futures are up 0.13% to 76,170
• VIX (/VIX) – The CBOE Volatility Index is down 9.77% to 15.97
• U.S. Dollar ($DXY) – The dollar index is up 0.01% at 100.255

Big Premarket Movers

Advancers:

• Generac Holdings (GNRC) +30.49%
• Moderna (MRNA) +3.97%
• Vertiv Holdings (VRT) +3.42%
• Coherent (COHR) +3.27%
• Flex (FLEX) +3.12%

Decliners:

• Palo Alto Networks (PANW) -1.96%
• Reddit (RDDT) -1.71%
• Lennar (LEN) -1.11%
• CrowdStrike Holdings (CRWD) -0.77%
• Salesforce (CRM) -0.74%

Economic Data (ET)

• 8:30 AM: Housing Starts and Permits
• 8:30 AM: Jobless Claims
• 8:30 AM: Philly Fed Manufacturing
• 10:00 AM: Pending Home Sales
• 10:30 AM: EIA Natural Gas Inventories
• 4:30 PM: Fed Balance Sheet

Notable Earnings

• Premarket: N/A
• Postmarket: N/A
• Premarket Friday: N/A
• Postmarket Friday: N/A

Upgrades/Downgrades

• Citizens upgraded J.B. Hunt (JBHT) to Outperform from Market Perform
• Macquarie upgraded Trip.com (TCOM) to Outperform from Neutral
• Bernstein downgrades Palo Alto Networks (PANW), Okta (OKTA), and SentinelOne (S) from Outperform to Market Perform
• JPMorgan downgrades Pegasystems (PEGA) from Overweight to Neutral
• Guggenheim downgrades Lyft (LYFT) from Buy to Neutral
• Citi downgrades Boston Scientific (BSX) from Buy to Neutral
• HSBC downgrades Copart (CPRT) from Buy to Hold
• from Outperform to Market Perform
• Goldman Sachs downgrades Fluence Energy (FLNC) from Buy to Neutral
• Baird downgrades Fluence Energy (FLNC) from Neutral to Underperform

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

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