Stock market today: Dow, S&P 500, Nasdaq rise as Fed rate hike pacifies markets’ inflation worries

US stocks rose in premarket trading on Thursday as oil prices edged lower and an expected Fed rate hike on Wednesday offered some relief that the central bank was working to contain inflation.

Futures on the Dow Jones Industrial Average (YM=F) rose 0.7%, while those on the S&P 500 (ES=F) gained 0.7%. Contracts for the Nasdaq-100 (NQ=F) also rose 0.8%, rebounding from a slump on Wednesday.

Stocks recovered as investors assessed Federal Reserve Chairman Kevin Warsh’s hawkish rhetoric, which analysts said helped restore the Fed’s credibility on inflation. On Wednesday, the Federal Reserve raised interest rates by 25 basis points for the first time in three years and projected one more rate hike this year.

The decision drew ire from President Trump, who called for lower interest rates and said he spoke with Warsh ahead of the FOMC meeting. “You might as well vote with the board because it’s not going to matter,” Trump said he told Warsh.

Oil prices, meanwhile, ticked lower as US Energy Secretary Chris Wright said Saudi Arabia’s East-West pipeline, which has become a key alternative route for oil stuck in the Strait of Hormuz, would be restored soon. Brent crude (BZ=F), the global benchmark, changed hands at $104 per barrel.

Initial jobless claims and housing starts highlight Thursday’s economic calendar. The Bank of England will also issue its central bank policy decision.

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