US stocks rose in premarket trading on Thursday as oil prices edged lower and an expected Fed rate hike on Wednesday offered some relief that the central bank was working to contain inflation.
The Dow Jones Industrial Average rose 0.7%, while the S&P 500 climbed 1%. The tech-heavy Nasdaq Composite jumped 1.4%, rebounding from a post-Fed-hike slump on Wednesday.
Stocks recovered as investors assessed Federal Reserve Chairman Kevin Warsh’s hawkish rhetoric, which analysts said helped restore the Fed’s credibility on inflation. On Wednesday, the Federal Reserve raised interest rates by 25 basis points for the first time in three years and projected one more rate hike this year.
