Stock market today: Futures jump after Fed signals rate cuts are coming

• US stock futures jumped Thursday after the Fed stood by its plan to slash interest rates this year.
• Analysts hailed a "euphoric tone" and "feel-good factor" in markets following the positive outlook.
• Micron Technology shares soared 18% in premarket trading after the microchip maker touted AI demand.

Stocks jumped in premarket trading on Thursday after the Federal Reserve reiterated its plan to cut interest rates in the coming months.

S&P 500 futures climbed 0.3%, Nasdaq 100 futures rose 0.6%, and Dow Jones Industrial Average futures gained 0.2%.

The benchmark 10-year Treasury yield dipped to about 4.24%, while the US Dollar Index advanced 0.2% to about 104 points. The gold price gained 2%, surpassing $2,200 an ounce for the first time.

Fed Chair Jerome Powell said after a two-day policy meeting that rates had probably peaked for this cycle, and the US central bank would likely start easing its monetary policy "at some point this year."

Although inflation ticked up in February and the labor market is running hot, Fed members projected three rate cuts by December.

"There is a euphoric tone in markets on Thursday, as investors wake to a sea of green across US and European stock markets," Kathleen Brooks, research director at XTB, said in a morning note.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, echoed those comments in her morning note.

The Fed "reassured investors that cuts will arrive in the summer, although more patience is needed," she said. "It's helped stocks surge on another wave of enthusiasm and the feel-good factor is set to keep reverberating through early trading today."

The biggest premarket movers included Micron Technology, which surged as much as 18% and was poised to open at a record high.

The microchip maker excited investors by issuing a stronger revenue forecast than Wall Street expected, and trumpeting strong demand from AI companies.

Thursday's earnings slate includes Nike, FedEx, Accenture, and Lululemon. On the data front, fresh figures for jobless claims, existing home sales, manufacturing sentiment, and the leading economic indicators are due later.