June 14, 2024

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Stock futures drop as traders weigh another massive Fed rate hike

Stock futures drop as traders weigh another massive Fed rate hike

Brendan McDermid | Reuters

US stock futures fell Thursday morning after a choppy session in the major averages as traders weighed another rate hike from the Federal Reserve.

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

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

The Federal Reserve went through its third consecutive increase of 0.75 percentage points. 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.