Federal Reserve steady, US futures up 0.21%

After a challenging day for the major averages, stock futures saw a modest rise Thursday morning. This shift in market sentiment followed the Federal Reserve's announcement, which confirmed rate stability and noted that a rate cut in March appears unlikely. S&P 500 futures saw an increase of 0.21%, while Nasdaq 100 futures rose 0.34%. Similarly, Dow Jones Industrial Average futures rose 39 points, marking a 0.1% gain.

Reactions found in expanded trade and global indices

Despite the positive change in futures, expanded trading showed mixed responses. For example, Qualcomm shares fell slightly even after reporting first-quarter results that exceeded earnings and revenue estimates, driven by strong sales of mobile phone chips. On Wall Street, the major averages had a disappointing session:

• The Dow Jones fell 317 points (0.8%).
• The S&P 500 fell 1.6%.
• The Nasdaq Composite plummeted 2.2%.

Asian markets also showed mixed results. Japan's Nikkei 225 and Australia's ASX 200 indices were among the worst performers, losing between 0.8% and 1%. By contrast, China's Shanghai Shenzhen CSI 300 and Shanghai Composite indices posted gains, rising 0.9% and 0.4%, respectively, offering a ray of hope amid economic challenges.

Asian markets are mixed and Hang Seng rises 2%

Hong Kong's Hang Seng Index outperformed others in Asia, rising nearly 2% after suffering heavy losses earlier in the week. This rebound was supported by a private survey that indicated that China's manufacturing sector grew as expected in January. However, the pace of growth remains modest, in line with another survey highlighting current weaknesses in the sector. These mixed signals from Asian markets reflect the complex interplay of global economic trends, investor sentiment and political decisions, and paint a nuanced picture of the current financial landscape.

Global markets' reaction to the Federal Reserve's rate decision has been a mix of cautious optimism and mixed responses. While US stock futures showed slight gains, extended trading and Asian indices tell a story of mixed reactions and continued economic challenges. Market dynamics continue to be influenced by a multitude of factors, requiring investors to navigate with informed strategies and a keen eye on global trends.