Sept 17 (Reuters) - US stock index futures surged on Thursday as retreating oil prices bolstered confidence, with the Federal Reserve's first interest-rate hike under Chair Kevin Warsh reassuring investors of the central bank's resolve to combat inflation.
The policy decision eased a chronic source of anxiety, allowing investors to return to old patterns. Technology shares gained, with Nvidia <NVDA.O> and Amazon <AMZN.O> rising more than 1% each in premarket trading.
The gains will be crucial for investors in the second half of September, historically a weak month for equities. The benchmark S&P 500 (.SPX), has lost 1.7% so far this month.
"Although the argument that energy prices are elevated because of a temporary disruption in the Middle East may be true, inflation has been above target for over five years," said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
Warsh "threaded the needle very well," he said.
At 07:05 a.m. ET, Dow E-minis rose 370 points, or 0.72%, S&P 500 E-minis gained 62 points, or 0.82%, and Nasdaq 100 E-minis added 308.25 points, or 1.06%.
However, the Fed also warned more hikes may be needed in coming months to control price pressures. The uncertainty over how high interest rates could ultimately rise is likely to keep stocks and bonds volatile in the weeks ahead.
Traders see a near 58% chance of another increase when central bankers meet next in October, compared with nearly 44% a day ago, according to CME's FedWatch.
"The history is clear that once the Fed begins raising rates, they do it multiple times; but the pattern is less clear about whether they will raise rates at consecutive meetings or leave rates unchanged at some of the meetings in between," Zaccarelli said.
The yield on the benchmark 10-year U.S. Treasury also slipped, taking some pressure off equities. High yields on risk-free U.S. Treasuries typically dampen the appeal of stocks.
Meanwhile, oil prices dropped for a second consecutive day, with Brent crude futures down more than 2% to $103.70. US West Texas Intermediate crude futures also fell 1.7% to $100.70.
Investors also kept close watch on developments in the Middle East. The conflict's spread to Yemen has jeopardized shipping routes through the Red Sea, on top of disruptions to Saudi Arabia's East-West Pipeline, adding to worries about global crude supplies and inflation pressures.
Shares of neocloud firms rose in premarket trading, with CoreWeave (CRWV.O), Nebius (NBIS.O), and IREN (IREN.O), up 6.9%, 9.8% and 5.7%, respectively.
Fluence Energy (FLNC.O), tumbled more than 21% after lowering its revenue forecast for fiscal year 2026.
Reporting by Niket Nishant and Tharuniyaa Lakshmi in Bengaluru; Editing by Joyjeet Das and Pooja Desai
