DJI: Dow Futures Jump 360 Points After Fed-Led Selloff Washed Out 631 Points

Blue-chip index is set to recover more than half of Wednesday’s 630-point loss as oil retreats and Asian stocks rise.

📈 Dow futures stage a partial recovery

• Dow futures rose roughly 360 points Thursday after the index tumbled 631 points, or 1.2%, to 51,462 Wednesday.
• The S&P 500 lost 0.45%, while the Nasdaq finished almost unchanged as technology shares proved more resilient than industrial, financial and energy stocks.
• The Dow’s underperformance partly reflects its unusual construction. Unlike the market-value-weighted S&P 500, the Dow is price-weighted.
• That means companies with higher share prices exert greater influence regardless of their overall size. A difficult session for several expensive components can therefore produce an impressively dramatic point total.
• Futures are recovering around 60% of Wednesday’s loss while S&P 500 and Nasdaq futures gained roughly 0.6% alongside the Dow, suggesting the improvement is broad rather than another tech-only rescue mission.

🏦 Fed hangover meets cheaper oil

• The Federal Reserve raised rates by 25 basis points to 3.75%–4.00% and indicated another increase is likely this year.
• Policymakers also project no reduction in all of 2027. Stocks initially rose before reversing as investors accepted that the Fed’s “short” hiking cycle could still leave borrowing costs elevated for considerably longer.
• Relief arrived from oil. Brent fell another 1.2% toward $104.60, while WTI dropped to $101.30. Saudi Arabia offered additional crude through ship-to-ship transfers near Oman, easing some fears.
• Lower crude benefits the Dow’s manufacturers, retailers and consumer-facing companies by reducing transport and input costs. It is less helpful for energy heavyweights such as Chevron, which gained during oil’s ascent but now faces the reverse trade.

🌏 Asia rises as central banks’ week continues

• Japanese stocks advanced Thursday, with the Nikkei gaining around 1%. Pharmaceutical and machinery companies led the move: Eisai rose 2.4% and Mitsubishi Heavy Industries added 3.2%.
• The Bank of England is expected to hold rates at 3.75% today despite UK inflation accelerating to 3.1%. Traders will look for guidance on a possible November increase, particularly after higher energy costs revived inflation concerns across Europe.
• The Bank of Japan is expected to raise its rate from 1% to 1.25% Friday, the highest in 31 years. Since the move is heavily priced, Governor Kazuo Ueda’s guidance will likely be the big surprise. One-and-done hike or a series of hikes?

💵 Dollar wins while alternatives tread carefully

• The dollar index climbed to 100.40, its highest in seven weeks, as traders assigned roughly a 90% probability to another Fed increase this year.
• EUR/USD fell below $1.15, sterling weakened ahead of the BoE and USD/JPY topped ¥156 despite expectations for Japanese tightening.
• Gold recovered above $4,300 after its post-Fed decline. Bullion is balancing a stronger dollar and higher policy rates against geopolitical risk, fiscal concerns and easing long-term yields.
• Bitcoin held near $76,400, showing moderate resilience after the Fed and the Clarity Act setback. The immediate test is whether BTC can reclaim $77,000–$78,000 while cash and government bonds offer more competitive returns.