Stock futures fall as traders weigh another large rate hike from Federal Reserve


Brendan McDermid | Reuters

U.S. stock futures fell on Thursday morning following a volatile session in the major averages as traders weighed another large rate hike from the Federal Reserve.

Dow Jones Industrial Average futures declined by 109 points, or 0.36%. S&P 500 and Nasdaq 100 futures fell 0.56% and 0.79%, respectively.

During the regular session on Wednesday, the Dow Jones Industrial Average slid 522 points, or 1.70%, despite jumping more than 300 points earlier in the day. The S&P 500 shed 1.71%, and the Nasdaq Composite slumped 1.79%.

The Federal Reserve passed through a third consecutive 0.75 percentage point increase. Policymakers pledged to continue raising rates as high as 4.6% in 2023 before pulling back in the fight against inflation, spurring fears on Wall Street that the economy could tip into a recession.

The central bank expects to raise its year-end rate to 4.4% in 2022, continuing aggressive action against rising prices through the remainder of the year. 

“I think they should slow down,” DoubleLine Capital CEO Jeffrey Gundlach said Wednesday on CNBC’s “Closing Bell: Overtime.” “Monetary policy has lags that are long and variable, but we’ve been tightening now for a while,” he added, noting that the impact of the tightening could lead to a recession.

On the economic front, the latest data on weekly jobless claims is expected Thursday at 8:30 a.m. ET.



Read More: Stock futures fall as traders weigh another large rate hike from Federal Reserve

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More