Stock futures mixed following Fed update and ahead of more economic data

Stock futures were mixed on Thursday morning after the Federal Reserve’s latest policy update.

Dow Jones Industrial Average futures added 44 points. S&P 500 futures were up 0.1% and Nasdaq 100 futures were slightly lower.

In regular trading, the Dow Jones fell 142 points, while the S&P 500 fell 0.61% and the Nasdaq Composite fell 0.76%.

Major indexes reacted negatively as investors digested the Federal Reserve’s latest comments following a increase in its overnight borrowing rate. The central bank said it would continue raising rates through 2023 and forecast a higher-than-expected terminal rate of 5.1%. With Wednesday’s half-percentage-point hike, the target rate range is currently 4.25% to 4.5%, the highest in 15 years.

“The Fed just put a roadblock in front of Santa’s sleigh,” said Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs.

She also noted the tone of Fed Chairman Jerome Powellwho, in his Wednesday afternoon speech, sounded “strict” and clear that he “has no intention of taking a break or going the other way.”

“It’s going to be higher for longer and monetary policy is going to be tighter than expected,” Jablonski said. “The market is going to be handicapped by Fed policy for quite some time to come. give us some short-term volatility.”

Despite favorable improvements such as modest growth, spending and production, Powell said there remains relevant job gains are too robust and the unemployment rate is too good for the Fed’s fight against inflation.

Investors will have another batch of economic data to digest on Thursday. Retail sales, unemployment insurance claims and the Philadelphia Fed manufacturing index are all due out at 8:30 a.m. ET.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top