US Futures Rise After GDP; ECB Decision in Focus

US stock futures rose after data showed the US economy rebounded in the third quarter, with traders still digesting the European Central Bank’s decision to raise its policy rate and signal more tightening ahead.

Contracts on the S&P 500 rose, while futures on the Nasdaq 100 are little changed. Meta Platforms Inc. shares plunged as much as 21% in premarket trading after the Facebook parent gave a disappointing revenue forecast and asked investors for patience as costs soared.

The Stoxx Europe 600 Index fell 0.8% after the ECB lifted its policy rate by 75 basis points, in line with expectations. The euro extended losses against the dollar and the yield on 10-year German bunds pared a rise.

The yield on the 10-year Treasury bond rebounded after inching below 4% earlier, with investors positioning for less aggressive rate hikes as earnings and economic data indicate a slowdown. The benchmark US yield has dropped more than 20 basis points over the past two days. A gauge of the dollar gained after two days of steep declines.

A contraction in services and manufacturing, and fewer new home sales showed the Fed’s efforts to cool the economy seem to be bearing some fruit. Still, economists expect the Fed to hike by 75 basis points for the fourth time in a row when it meets next week. Traders have cut expectations for rates to peak next year to 4.86% from 5% a week ago.