US stocks were poised on Thursday for a bid on fresh record highs, after the Federal Reserve lowered interest rates for the first time this year and signaled that more cuts are on the way in coming months.

Dow Jones Industrial Average futures (YM=F) rose 0.7%, while those on the S&P 500 (ES=F) moved roughly 0.9% higher. Contracts on the tech-heavy Nasdaq 100 (NQ=F) led the gains, up more than 1%.

Stocks are eyeing new highs after slipping from records in the wait for the Fed to confirm the widely anticipated shift to easing. If premarket gains hold, the S&P 500 (^GSPC) looks set to cross 6,700 at the open, after closing above 6,600 for the first time on Monday.

The moves come as Wall Street debates the future path of Fed policy. Signs of a growing slowdown in the labor market are credited with helping persuade policymakers to cut rates by a quarter percentage point on Wednesday.

The Fed's "dot plot" indicated that two more interest cuts are likely before the end of 2025. However, Chair Jerome Powell said high inflation and a weak labor market leave "no risk-free path", raising doubt further cuts will come smoothly.

Investors will get more insight into the jobs landscape with the release of weekly jobless claims figures on Thursday.

On the corporate front, FedEx (FDX) will report its quarterly results after the bell. Analysts expect the delivery giant's profit to take a hit from President Trump's decision to end the "de minimus" tariff exemption for low-value direct-to-consumer packages from China and Hong Kong. These packages account for about three-quarters of duty-free sub-$800 shipments to US each year, they said.

Read more: The latest on Trump's tariffs

Trump is on a state visit to the UK, where he dined with tech and finance executives at Windsor Castle. Trump and Prime Minister Keir Starmer are set to meet on Thursday amid efforts to nail down deals on tech, energy, and digital assets. In particular focus for the US and the UK is boosting ties in AI, with Microsoft (MSFT) and Nvidia (NVDA) pledging to make investments.

I awoke today to two things.

One, videos of President Trump hanging with King Charles in the UK. And two, Meta (META) CEO Mark Zuckerberg playing with his new AI glasses on stage at the company's Connect event. What a way to start my reporting day!

While Zuck's new tech didn't work perfectly on stage, what he showed off was impressive — especially after the dud that was Apple's (AAPL) iPhone 17 reveal.

JP Morgan analyst Doug Anmuth agrees on Meta:

\\"Meta Connect showcased Meta's ambitions and progress toward shaping computing’s next form factor, while also serving as a reminder of the many tens of billions of dollars that Meta has invested into AI and the Metaverse. However, as we’ve discussed many times in the past, Meta continues to earn the right to spend on future growth with strong core advertising performance.\\"

Disney (DIS) stock is little changed on Thursday after the media giant's ABC network took \\"Jimmy Kimmel Live!\\" off air indefinitely, responding to a backlash over remarks on the killing of Charlie Kirk.

The move followed a warning by Nexstar Media (NXST) that it would pull the late-night talk show from its network of affiliates. FCC Chairman Brendan Carr also hinted at a risk to ABC broadcast licenses if no action was taken over Kimmel's remarks around the death of Republican activist Kirk.

Bloomberg reports:

Disney’s decision to suspend one of its biggest stars underscores the treacherous political climate for major media companies and is the latest example of the Trump administration pressuring them to mind their talent’s on-air remarks.

Last year, Disney paid $15 million to settle a defamation lawsuit brought by President Donald Trump over comments made by host George Stephanopoulos. The president this week sued the New York Times Co. (NYT) for $15 billion, claiming it has an agenda against him.

Kimmel, who has been a vocal critic of Trump, accused Republicans of using Kirk’s death to criticize their opponents. ...

“This is a very, very serious issue right now for Disney,” Carr said. “They have a license granted by us at the FCC, and that comes with it an obligation to operate in the public interest.”

Read more here.

Bloomberg reports:

Shareholders wiped A$3 billion ($2 billion) off the market value of Australian oil and gas group Santos Ltd. after a third attempted sale faltered on Wednesday, raising pressure on management to increase returns.

Shares in the gas producer fell as much as 14% at the start of Sydney trading, their biggest intraday decline since March 2020, following Abu Dhabi National Oil Co.’s decision to walk away from its $19 billion takeover bid. The stock was down 12% at 12:25 p.m. in Sydney, valuing the company at A$22 billion.

A group led by Adnoc’s XRG unit dropped its proposal after failing to agree on key terms, ending months of talks. It marks the latest setback for Chief Executive Officer Kevin Gallagher, who has faced investor criticism for pushing an aggressive plan to boost output over higher dividend payouts.

“Given this is the third time Santos has failed to find a buyer, and its relatively poor investment performance, Santos management is likely to face increasing shareholder pressure to increase returns and pivot to a new strategy,” said Josh Ruciman, gas analyst at the Institute for Energy Economics and Financial Analysis. “This may include Santos divesting its LNG assets, but whether Santos’ current management is willing to do so is another question.”

Read more here.

Oil prices held overnight Wednesday following the Fed's expected rate cut. Investors are eyeing further rate cuts towards the end of the year in the hopes that lowered borrowing costs leads to a boost in demand.

Reuters reports:

Brent (BZ=F) crude futures were 8 cents, or 0.12%, down at $67.87 a barrel at 0042 GMT. U.S. West Texas Intermediate (CL=F) futures were down 10 cents, or 0.16%, at $63.95.

The Federal Reserve cut is policy rate by a quarter of a percentage point on Wednesday and indicated it will steadily lower borrowing costs over the rest of the year, as policymakers responded to signs of weakness in the jobs market.

On the demand side, U.S. crude oil stockpiles fell sharply last week as net imports dropped to a record low while exports jumped to a near two-year high, showed data from the Energy Information Administration.

Read more here.

Read more: The latest on Trump's tariffs