U.S. stock index futures rose on Sunday after the U.S. Treasury Department and the Federal Reserve announced sweeping steps to support embattled mortgage finance companies Fannie Mae and Freddie Mac if needed to bolster confidence and head off potential steep declines in global financial markets.
The Fed said the two pillars of the U.S. housing market could access its discount window for emergency cash while the Treasury said it would temporarily increase its line of credit to the two, as well as purchase equity in them, if necessary.
The move by the Fed echoed its emergency action to help rescue investment bank Bear Stearns in March, when it opened the discount window to investment banks for the first time since the Great Depression.