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LivestreamMenuTraders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., Sept. 16, 2026. Jeenah Moon | Reuters
Stock futures were near the flatline Wednesday evening following a market sell-off incited by the first Federal Reserve interest rate hike in three years.
Futures tied to the Dow Jones Industrial Average advanced 13 points, or 0.03%. S&P 500 futures were up 0.06%, and Nasdaq-100 futures added 0.1%.
In regular trading, the blue-chip Dow lost more than 630 points, or 1.2%, dragged down by financial services names. The broad market S&P 500 edged lower by 0.5%, while the tech-heavy Nasdaq Composite ended the session marginally lower.
In a widely anticipated move, the Fed raised the overnight federal funds rate by a quarter percentage point on Wednesday afternoon, bringing the target range to 3.75%-4%. Policymakers also signaled another hike could come this year, with Fed Chairman Kevin Warsh saying that inflation remains too high.
Indeed, August’s latest consumer price index reading came in 3.4%, and oil prices have surpassed $100 per barrel.
“The bigger question now is whether this rate increase is one and done or the beginning of another tightening cycle,” said Steve Rick, chief economist at TruStage.
“Higher oil prices stemming from continued conflict in the Middle East could keep inflation elevated, but monetary policy works with long and variable lags, and additional increases would put more pressure on consumers and businesses already facing elevated borrowing costs,” he added. “The Fed should give this increase time to work before determining how much additional restraint is necessary.”
Investors are now turning to Thursday’s economic data for further clues on the health of the economy.
Weekly jobless claims data will be out at 8:30 a.m. ET. Traders are also monitoring August’s housing starts, which could offer a read on how elevated borrowing costs are affecting residential construction.
6 Min Ago
Microsoft’s total return prospects just became even more attractive, per Morgan Stanley
Software giant Microsoft just boosted its total return prospects with a sweet dividend hike, according to Morgan Stanley.
On Tuesday, the company announced a quarterly dividend of 98 cents per share, reflecting an increase of 8%. The dividend is payable on Dec. 10 to shareholders of record on Nov. 19.
“The increase is modestly below the ~10% average increase over the prior five years, but remains consistent with Microsoft’s track record of steadily growing its dividend alongside earnings,” said Morgan Stanley analyst Adam Wood.
He said that combined with earnings per share growth in the high-teens, the dividend boost “supports a durable high-teens total return profile at MSFT, framing an attractive risk/reward.”
The firm rates Microsoft overweight, and its price target of $600 suggests 22% upside from Wednesday’s close.
—Darla Mercado
7 Min Ago
Amazon is eligible to purchase shares of AI infrastructure play Generac
Amazon obtained warrants that give it the right to purchase up to $340 million shares of Generac.
The power company said in a securities filing that it has issued warrants to Amazon to acquire up to 1.69 million shares valued at $200.93 each. As part of the deal, Generac will provide Amazon with backup power generators for its data centers, with initial shares expected to total $2.4 billion in 2027 and 2028, according to the filing.
Generac shares surged 35% in extended trading.
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Generac shares in the past day
Read more about the Amazon-Generac deal from CNBC’s Annie Palmer here.
—Darla Mercado
18 Min Ago
Stocks open near flat
U.S. stock futures opened near the flatline on Wednesday evening in New York.
Futures tied to the Dow Industrials were off 5 points, or 0.01%. S&P 500 futures were up 0.02%, and Nasdaq 100 futures gained roughly 0.1%.
—Darla Mercado
