U.S. stock futures rise after hawkish Fed dents Wall St

U.S. stock index futures climbed on Thursday after the Federal Reserve increased interest rates for the first time in three years, boosting Wall Street's hopes for a market recovery. The S&P 500 Futures increased 0.48% to 7,659.0 points, while Nasdaq 100 Futures rose 0.67% to 29,446.50 points, and Dow Jones Futures climbed 0.50% to 52,175.0 points.

Technology stocks experienced a sharp rebound, with Nasdaq futures driving the gains, thanks to a bill aimed at regulating data center power costs. Snap Inc (NYSE:SNAP) surged 2.5% after announcing a partnership with NVIDIA Corporation, Amazon.com Inc, and Salesforce Inc for its augmented reality glasses in the enterprise market.

Meanwhile, Generac Holdings Inc (NYSE:GNRC) jumped over 30% following Amazon's grant of warrants to buy up to $340 million worth of company stock as part of a power supply agreement. Wall Street indexes had fallen on Wednesday after the Fed's rate hike, with Fed Chair Kevin Warsh expressing a hawkish stance, warning of persistent high inflation and insufficiently restrictive financial conditions.

Although Warsh did not indicate future rate cuts, his remarks were viewed as hawkish due to the central bank's commitment to battling inflation. The Fed chair's comments potentially put him at odds with President Donald Trump, who had advocated for lower rates to stimulate economic growth. Trump criticized the Fed's decision on social media, suggesting interest rates should be 1% or less.

However, a Reuters report revealed secret talks between U.S. officials and Iran-aligned Houthis in Oman, offering some optimism about easing Middle East tensions. The news of the talks encouraged markets, and a drop in oil prices also contributed to the positive sentiment.