By Ambar Warrick

(Reuters) – U.S. stock index futures rose on Thursday, indicating Wall Street was set to jump further from recent lows after investors largely brushed off concerns over the Federal Reserve’s plans for tapering.

According to the Fed, interest rates may rise sooner than predicted next year and it might reduce monthly bond purchases as quickly as November. Inflation was also forecast at 4.2% for the year-end by the bank, which is more than double its target rate.

Markets had largely priced the November deadline in. The Fed’s relief and Evergrande’s concerns about a Chinese property developer defaulting on their loans helped all three Wall Street indices to jump around 1%.

The Dow and the S&P had marked their best day in two months, as they staged a strong recovery from two-month lows hit earlier in the week.

Premarket trade saw major banks rise on Thursday due to expectations that interest rates would eventually rise.

U.S. E-minis were up 26.5 points, or 0.6%, at 6:29 a.m. ET. Dow E-minis were up 185 points, or 0.54%, while E-minis were up 98.75 points, or 0.65%.

The major Wall Street indexes trade lower in the month due to seasonal weak trends and concerns about fiscal spending, slowdown in economic expansion, and other factors.