Brendan McDermid | Reuters
US stock futures fell Thursday morning after a volatile session in the major averages as traders weighed another big rate hike from the Federal Reserve.
Dow Jones Industrial Average futures fell 109 points, or 0.36%. S&P 500 and Nasdaq 100 futures fell 0.56% and 0.79% respectively.
In Wednesday’s regular session, the Dow Jones Industrial Average slipped 522 points, or 1.70%, despite jumping more than 300 points earlier in the day. The S&P 500 lost 1.71% and the Nasdaq Composite fell 1.79%.
The Federal Reserve recorded a third consecutive increase of 0.75 percentage points. Policymakers pledged to keep raising rates to 4.6% in 2023 before retreating in the fight against inflation, sparking fears on Wall Street that the economy could tip into a recession.
The central bank plans to raise its end-of-year rate to 4.4% in 2022, continuing aggressive action against rising prices for the rest of the year.
“I think they should slow down,” DoubleLine Capital CEO Jeffrey Gundlach told CNBC on Wednesday.Closing bell: extra time“Monetary policy has long and variable lags, but we have been tightening for some time now,” 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 due Thursday at 8:30 a.m. ET.