Higher open likely for the U.S markets Thursday after the U.S. stock index futures jumped sharply in the morning spurred by the Federal Reserve’s readiness for a cut in interest rates later this year.

At 6 a.m. ET,  Dow Jones futures indicated a positive open of more than 240 points. The S&P and Nasdaq futures were also high.

At present, the Federal Open Market Committee has kept the key rate in the 2.25-2.5 percent region.

By now, markets have factored in the possible rate cut by July after the signals from the Fed meeting that ended Wednesday.

“In light of these uncertainties and muted inflation pressures, the Committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2% objective,” the FOMC statement said.

On the data front, the latest weekly jobless claims figures, first-quarter current account data will be published at 8:30 a.m. ET.

In results, Darden Restaurants, Kroger, Commercial Metals, Canopy Growth, and Red Hat will release their latest quarterly earnings.

Asian stocks up

Stocks in Asia jumped Thursday after the U.S. Fed opened the door to rate cuts in the immediate future. 

Mainland  Chinese shares surged. The Shanghai Composite added 2.38 percent. The Hang Seng index in Hong Kong’s rose 1.1 percent.

Japan’s Nikkei 225 gained 0.6 percent. South Korea’s Kospi closed 0.31 percent higher while Australia’s ASX 200 added 0.59 percent.

The market mood in Asia was also influenced by the slight progress made in U.S.-China trade front and hopes have renewed for a deal.

President Donald Trump and Chinese president Xi Jinping will meet in Japan at the upcoming G-20 summit, preceded by talks between the “respective teams.”

European stocks traded higher Thursday as investors awaited the interest rate decision from the Bank of England. The pan-European Stoxx 600 jumped 0.7 percent during the morning session. Germany’s DAX also soared to a nine-month high.

Oil price jumps

Expectations over the U.S. Federal Reserve cutting interest rates and a drop in U.S. crude inventories supported oil prices. Brent crude, the global benchmark jumped $1.38 to $63.20 a barrel at 0854 GMT and had the highest jump to $63.88 earlier in the session.

The U.S. West Texas Intermediate crude gained $1.45 to touch $55.21.

Gold zooms high

Hints of Fed’s softness for a rate cut graced gold prices and it soared 2 percent Thursday to hit the highest level in more than five years.

The U.S. Fed's signals of a possible interest rate cut pulled down the dollar and also lowered the yields of U.S. Treasury.

Spot gold jumped 1.7 percent to $1,382.70 per ounce at 0657 GMT and had the highest at $1,386.38 in the same session. The U.S. gold futures jumped 2.8 percent to $1,386.30 an ounce.