MW: U.S. stock futures jump after ECB cuts rates, expands asset purchases
U.S. stock futures on Thursday turned solidly higher after the European Central Bank delivered fresh stimulus measures to boost the eurozone’s flagging economy.
The ECB cut the bank’s key lending rate to zero from 0.05% and pushed the rate on its deposit facility to minus 0.4% from minus 0.3%. It also announced it would expand the size of its monthly bond purchases to €80 billion ($86.86 billion) from its current level of €60 billion beginning in April and expand the scope of those purchases to include investment-grade, euro-denominated, nonbank corporate bonds.
European stocks surged higher on the news and U.S. futures followed suit, rallying after already showing early gains ahead of the announcement.
S&P 500 futures ESH6, +0.36% moved up 19.10 points, or 1%, to 2,007.50, while Dow Jones Industrial Average futures YMH6, +0.30% advanced 143 points, or 0.8%, to 17,146. Nasdaq-100 futures NQH6, +0.49% gained 45.25 points, or 1.1%, to 4,339.50.
The ECB’s policy decision will be followed by a news conference with ECB President Mario Draghi at 8:30 a.m. Eastern.
Read more: 5 things to watch at today’s key ECB meeting
On Wednesday, the S&P 500 SPX, +0.51% closed 0.5% higher, while the Dow DJIA, +0.21% edged up by 0.2%, or 36 points.
Other markets: Oil futures CLJ6, +0.03% were little changed, while Asian markets closed mostly flat or higher after a surprise New Zealand rate cut. Gold futures GCJ6, +0.42% are lower, and a key dollar index DXY, -0.32% is gaining.
Check out: MarketWatch’s Economic Calendar
Amazon builds air cargo delivery network(0:41)
Amazon signed a deal with Air Transport Services Group to lease 20 Boeing 767 aircrafts to shuttle merchandise around the U.S.
Individual movers: Dollar General Corp. DG, +1.31% shares rose premarket after the retailer posted better-than-expected earnings and raised its dividend.
Vail Resorts Inc. MTN, +1.13% is among other companies expected to post earnings before the open. El Pollo Loco Holdings Inc. LOCO, -1.00% and Ulta Salon Cosmetics & Fragrance Inc. ULTA, -2.42% are due to report quarterly results after the closing bell.
Square Inc. SQ, +4.79% and Box Inc. BOX, +3.73% both look poised to gain after investors cheered their earnings reports late Wednesday.
