U.S. stock index futures were slightly higher during trading on Wednesday after the Federal Reserve made the biggest interest rate hike since 1994.

Futures contracts pegged to the Dow Jones Industrial Average added 0.22%. S&P 500 futures were up 0.23% and Nasdaq 100 futures were up 0.29%.

Major averages ended Wednesday on Wednesday, and the Dow and S&P 500 broke a five-day loss streak. The 30 shares added about 304 points, or 1%, while the S&P 500 rose 1.46%. The technological Nasdaq Composite has become relatively ahead, rising 2.5%.

The Federal Reserve on Wednesday announced a rate increase of 75 basis points, which was widely expected by the market.

“Obviously, today’s increase of 75 basis points is unusually large, and I don’t expect steps of this magnitude to be normal,” Federal Reserve Chairman Jerome Powell told a news conference after the decision.

Shares rose after Powell said an increase of 50 or 75 basis points “seems most likely” at the next meeting in July, indicating the central bank’s commitment to fighting inflation. However, Powell warned that decisions would be made “meeting after meeting.”

Individual members ’forecasts show that the Fed’s benchmark rate is now on track towards the end of the year at 3.4%.

“At the moment, the market has done most of the Fed’s work for them in terms of selling stocks and bonds over the past week – not to mention the whole year – so it’s no surprise that both markets have gone up today (stocks and bonds). prices are higher; bond yields are lower) given that they sold so much at today’s meeting, ”said Chris Zacareli, investment director of the Independent Advisor Alliance.

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Despite a rebound on Wednesday, key averages are still below last week and month and remain well below their records.

The S&P 500 and Nasdaq Composite are in the bear market, down about 21% and 32% from their all-time highs in January and November, respectively. The Dow index, meanwhile, is 17% below its January 5 all-time high.

Rapid inflation, at its highest level in 40 years, has boosted key averages as well as fears about slowing economic growth and the possibility of a recession.

“The market has been very prepared, even late for this story,” Morgan Stanley chief stock strategist Michael Wilson said after announcing a 75-point increase. “There is relief here,” he said, adding that the increase would not solve the problem of inflation overnight.

“It also increases the risk of a recession because you’re raising rates even faster, and I don’t think it’s going to help the bond market,” he told CNBC’s Closing Bell Overtime.

Economic data coming out on Thursday includes weekly unemployment claims, and economists surveyed by Dow Jones forecast 220,000 print publications. A housing release will also be published, and Adobe and Kroger will announce quarterly updates.

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