US stock futures were calm on Wednesday evening as investors processed the latest Federal Reserve projections.

Futures linked to the Dow Jones Industrial Average added 23 points, or less than 0.1%. Those for the S&P 500 and Nasdaq 100 hovered just above the flat line.

The moves in the futures come after the Federal Reserve raised its benchmark rate for the first time since 2018 and announced six new hikes this year, fueling a relief rally in equities.

The Fed significantly raised its forecasts for rate hikes and inflation in 2022, but investors appear to have taken these aggressive changes as evidence that the central bank was taking the price hike seriously.

“The dot plot shows they’re behind the curve, and we all know they’re behind the curve, and they’re trying to fix it,” said Stephanie Link, chief investment strategist and portfolio manager at Hightower Advisors. “At least they’re telling the market ‘we’re trying to fix it.'”

Jeffrey Gundlach, CEO of DoubleLine Capital, said of “Closing Bell: Overtime” that he expected markets to recover between now and the next Fed meeting in May, after selling sharply at the start of the year. He pointed to recent highs on the Cboe Volatility Index, often referred to as Wall Street’s fear meter, as a sign that the sale had gone far enough, at least in the short term.

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“If the VIX goes above 35, I don’t care how bad the tape looks, I don’t care how bad the geopolitics looks, you should become more bullish, not more bearish. And you’re going to get an oversold bounce,” said Gundlach.

Quarterly earnings reports fueled positive moves for stocks in after-hours trading. Shares of homebuilder Lennar gained 2% after the company reported stronger-than-expected earnings. Retailer Williams-Sonoma saw its stock rise 6% after announcing a dividend hike and beating earnings per share estimates.

On Wednesday, the Dow rose 518.76 points, or 1.55%, for its first three-day winning streak in more than a month. The S&P 500 gained 2.24%, while the Nasdaq Composite rose 3.77%.

Technology stocks, which have generally struggled since late last year, outperformed on Wednesday. Shares of Facebook parent Meta Platforms rose 6%, while Netflix added 4%.

Investors also followed the war in Ukraine. On Wednesday, reports of progress in ceasefire negotiations helped boost supplies. US President Joe Biden approved the shipment of additional weapons to Ukraine.

Investors will receive several new economic data on Thursday morning, including last week’s first jobless claims. Housing begins, Philadelphia Fed manufacturing data and industrial production will also be released before the bell.

This post Equity futures have changed little as the market appears to be building on the rally after the Fed rate hike

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