US stock futures rise as investors weigh Fed and global rate hikes

US stock index futures rose modestly on Friday, as investors weighed the stock market rally that developed after the Federal Reserve's (Fed) interest rate hike on Wednesday. At the same time, attention was focused on the Bank of Japan raising its rate to a 31-year high.

Ahead of trading, Dow Jones futures were nearly unchanged, S&P 500 futures rose 11 points, or 0.1%, while Nasdaq 100 futures gained 108 points, or 0.4%.

In the previous trading session, Wall Street's major indices showed significant gains. The S&P 500 rose about 1.1%, the tech-heavy Nasdaq Composite gained 1.7%, while the Dow Jones Industrial Average rose 0.6%. The current market dynamics are also being supported by declining oil prices and Treasury yields.

Although higher interest rates generally reduce the attractiveness of stocks, some investors interpreted the Fed's tough decision this week as a sign of its readiness to fight inflation. Particularly significant is the inflationary pressure caused by energy prices, which has recently become one of the main challenges for central banks worldwide.

Market participants are also weighing the issue of the Fed's independence, which has recently become a subject of political debate. President Donald Trump has repeatedly called on the central bank to sharply cut interest rates, though the Fed raised rates by 0.25 percentage points on Wednesday, bringing the target range to 3.75%-4.00%.

Meanwhile, on Friday, investors' attention was also directed at the Bank of Japan's decision. The Bank of Japan (BOJ) raised its rate from 1% to 1.25%, the highest level in 31 years. The decision was supported by seven board members, while two voted against it.

This marks the BOJ's second rate hike this year, and the sixth since March 2024. The decision was made against the backdrop of intensifying global inflationary pressure, particularly due to high oil prices and the ongoing conflict in the Middle East.

According to Deutsche Bank analysts, following the Fed's Wednesday decision and the European Central Bank's (ECB) decision the previous week, the global economy is once again entering a synchronized cycle of monetary tightening. They noted that additional rate hikes from all three central banks remain possible going forward.

At the same time, the BOJ's decision failed to strengthen the Japanese yen. Market participants focused on the relatively cautious tone regarding further rate hikes and the two dissenting votes on the board.

Friday's trading is also significant for the US stock market due to the quarterly "quadruple witching," when stock index futures and options, as well as individual stock options, expire simultaneously. On such days, trading volume and price volatility may increase.