June 9, 2023

Brendan McDermid Reuters

U.S. stock futures fell on Wednesday night after a volatile session in the major averages as traders expected another big rate hike from the Federal Reserve.

Dow Jones Industrial Average futures fell 46 points, or 0.15%. S&P 500 and Nasdaq 100 futures fell 0.3% and 0.44%, respectively.

During Wednesday’s regular session, the Dow Jones Industrial Average slid 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 underwent its third consecutive hike of 0.75 percentage points. Policymakers pledged to continue raising rates to 4.6% in 2023 before pulling back in the fight against inflation, stoking fears on Wall Street that the economy could be headed for recession.

The central bank is expected to raise its year-end rate to 4.4% in 2022, continuing aggressive moves 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.” “There is a backlog in monetary policy that is long and variable, but we have been tightening for some time now,” he added, noting that the effects of tightening could lead to a recession.

On the economic front, the latest weekly jobless claims data is expected at 8:30 a.m. ET on Thursday.

Source link

Leave a Reply

Your email address will not be published.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