US equity futures rebounded after the Federal Reserve raised interest rates by 25 basis points, marking its first rate hike since 2023. S&P 500 futures rose 0.6% after the underlying index fell to its lowest level since July, while Nasdaq 100 futures gained 0.7%.

The Federal Reserve also penciled in an additional rate hike later this year as policymakers continue efforts to contain inflation. President Donald Trump said he still had confidence in Fed Chairman Kevin Warsh, while criticizing what he described as a “hostile” Federal Reserve board after the central bank unanimously rejected his calls for lower borrowing costs.

Treasuries pared earlier losses following the Fed decision. The two-year Treasury yield fell 2 basis points to 4.71% after reaching its highest level since 2024 in the previous session. Yields on the 10-year and 30-year Treasury also declined by around 2 basis points, while Asian bonds reversed earlier declines.

Attention now turns to the UK and Japan, with the Bank of England expected to keep interest rates unchanged on Thursday before the Bank of Japan is expected to raise rates on Friday. European shares were also set for a firmer open, while Asian equities gained 0.3%.

Oil remained under pressure as signs emerged that recent Middle East supply disruptions may be easing. Brent crude traded around $105.75 a barrel after falling as much as 5% on Wednesday, while Saudi Arabia sought to restore roughly half the capacity of its East-West pipeline following drone strikes.

President Donald Trump also said the Iran war will end “very soon,” adding to expectations that supply risks could ease further. The improving supply outlook has contributed to the decline in oil prices.

In technology, Xu said Huawei has a larger share of China’s AI chip market than Nvidia.

Elsewhere, New Zealand’s economic growth exceeded estimates in the three months through June despite soaring fuel prices from the Middle East conflict, which have placed pressure on local households.

Trade tensions also remained in focus. President Donald Trump said he could impose additional tariffs on goods imported from the European Union or potentially cut off some trade if he determined that efforts to make Canada an associate of the bloc were harmful to the US.

In geopolitical developments, Ukraine’s infrastructure ministry said a Russian drone strike on a Tanzania-flagged ship heading toward a Ukrainian port killed one crew member and injured three others.

Gold rebounded after three consecutive sessions of losses, rising to around $4,290 an ounce.

Overall, markets reacted to the Federal Reserve’s first rate hike since 2023 with a rebound in US equity futures and a recovery in government bonds. At the same time, oil prices remained under pressure as Middle East supply disruptions showed signs of easing, while investors turned their attention toward upcoming monetary-policy decisions in the UK and Japan.

FISG Daily Market Wrap provides a concise view of the forces moving global markets, helping investors stay informed and better prepared for what comes next.

FISG — Interstellar Group