Stock futures slide as traders weigh another big Fed rate hike

Stock futures slide as traders weigh another big Fed rate hike

Brendan McDermid | Reuters

US stock futures fell on Thursday morning after a volatile session in the main averages, as traders weighed another big rate hike by the Federal Reserve.

Dow Jones Industrial Average futures were down 109 points, or 0.36%. S&P 500 and Nasdaq 100 futures fell 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 lost 1.71% and the Nasdaq Composite plunged 1.79%.

The Federal Reserve went through a third consecutive increase of 0.75 percentage points. Policymakers have pledged to keep raising rates to 4.6% in 2023 before backing off on fighting inflation, sparking fears on Wall Street that the economy could slide into a recession.

The central bank expects to raise its year-end 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 said Wednesday on CNBC’s “Closing Bell: Overtime.” “Monetary policy has lags that are long and variable, but we have been tightening now for a while,” he added, noting that the impact of 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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