Stock futures slip after a volatile session following the Fed’s latest interest rate hike

Stock futures slid on Thursday after losses in the previous session after the Federal Reserve raised interest rates again and signaled that no pivot or rate cut is coming soon. early.

Futures contracts linked to the Dow Jones Industrial Average traded down 23 points, or 0.1%. S&P 500 and Nasdaq 100 futures fell 0.1% and 0.2%.

Traders had anticipated the central bank’s 0.75 percentage point rate hike and initially interpreted the Fed’s statement as dovish, sending stocks higher on Wednesday after the decision was released. Those gains were then reversed when Fed Chairman Jerome Powell said it was “premature” to talk about a pause in rate hikes and that the terminal rate would likely be higher than expected.

“We still have some way to go and the data received since our last meeting suggests that the ultimate level of interest rates will be higher than expected,” he said.

The Dow Jones Industrial Average ended Wednesday’s trading session down 416 points, or 1.3%. The S&P 500 fell 2% and the Nasdaq Composite fell 2.8%.

Markets will likely continue to swing until it is clear that inflation has subsided and the Fed has stopped raising rates. Any data showing that the US economy is not slowing as the central bank tightens policy will likely weigh on stocks.

The next major report is for October’s nonfarm payrolls, which is due out on Friday.

“You get a good number of jobs, in other words a good unemployment rate that’s not going up, so the market is in big trouble,” Guy Adami, adviser advocacy director at Private Advisor Group, said on CNBC “Quick Money.”

Meanwhile, the corporate earnings season continued, with Qualcomm, Roku and Fortinet all down sharply after announcing disappointing quarterly results and forecasts.

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