June 20, 2024

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Stock futures bounce back slightly a day after the market sold out of the Fed’s rate hike

Stock futures bounce back slightly a day after the market sold out of the Fed's rate hike

US stock futures rose slightly Thursday morning after a significant drop in the major averages as traders weighed another big rate hike from the Federal Reserve.

Dow Jones Industrial Average futures rose 83 points, or 0.3%. S&P 500 and Nasdaq 100 futures rose about 0.2% each.

On Wednesday, the Dow Jones Industrial Average was down 522 points or 1.70%, the S&P 500 was down 1.71%, and the Nasdaq Composite was down 1.79%. The big drop came in a volatile period after the Federal Reserve’s third consecutive rate increase of 0.75 percentage points. At one point, the Dow Jones rose more than 300 points.

But stocks eventually closed lower, continuing the recent selling trend as investors Rated the latest Federal Reserve comments. Policymakers vowed to keep raising interest rates to 4.6% in 2023 before they back down in the fight against inflation, sparking fears on Wall Street that the economy could slip into recession.

The central bank expects to raise the interest rate at the end of the year to 4.4% in 2022, and to continue strict measures against price hikes for the remainder of the year.

“I think they should slow down,” DoubleLine Capital CEO Jeffrey Gundlach said Wednesday on CNBC.Closing bell: Overtime“Monetary policy has long and variable delays, but we are tightening it now for some time,” he added, noting that the effect of the tightening could lead to a recession.

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

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