Stock futures rose early Thursday. The action comes after the major averages rallied after the Federal Reserve stuck with its outlook for two interest rate cuts in 2025.

Futures tied to the Dow Jones Industrial Average added 130 points, or 0.31%. S&P 500 futures were up nearly 0.45%, while Nasdaq 100 futures climbed about 0.58%.

While the Fed kept the federal funds rate at a range of 4.25% to 4.5% in a widely anticipated move on Wednesday, the central bank also maintained a forecast for two rate cuts in 2025 despite an economic outlook that called for higher inflation and lower economic growth.

Stocks climbed, regaining some of their footing from a market sell-off that has been going on since February. The Dow jumped 0.9% and the S&P 500 surged just over 1%. The Nasdaq Composite gained 1.4%, but remains in correction — that is, the index is still more than 10% off its high.

The S&P 500, which briefly slipped into correction territory last week, is now more than 7% off its record high. The broad market index is also on pace to break a four-week losing streak.

Federal Reserve Chair Jerome Powell labeled the potential effect of tariffs on inflation as likely being short-lived or transitory.

“‘Transitory’ is back, or at least that was the insinuation. The market reaction, to me, says that investors are willing to believe that tariffs and other policies won’t create lasting inflationary pressures and that the Fed can stay in control,” said Elyse Ausenbaugh, head of investment strategy at J.P. Morgan Wealth Management.

Earlier this month, President Donald Trump said the economy could see “a period of transition” as his tariff policies rattled markets. He granted a reprieve from duties on select Canadian and Mexican imports, but this exemption is set to expire April 2.

Investors will monitor weekly jobless claims data on Thursday, as well as the Philadelphia Fed’s manufacturing survey and a report on existing home sales.

On the quarterly earnings front, Darden Restaurants, Nike, FedEx and Micron Technology are set to report Thursday.