US stock futures were lower on Thursday morning following a big decline in the major averages as traders weighed another large rate hike from the Federal Reserve.
Dow Jones Industrial Average futures fell about 5 points. S&P 500 futures lost 0.1% and Nasdaq 100 futures shed 0.3%.
On Wednesday, the Dow Jones Industrial Average dropped 522 points, or 1.70%.The S&P 500 shed 1.71%, and the Nasdaq Composite slumped 1.79%. The big drop came in a volatile period after the Fed’s third consecutive 0.75 percentage point rate increase. At one point the Dow was up more than 300 points.
But ultimately stocks closed lower, continuing the recent selloff trend as investors evaluated the Fed’s latest comments. Policymakers pledged to continue raising rates as high as 4.6% in 2023 before pulling back in the fight against inflation, spurring fears on Wall Street that the economy could tip into a recession.
The central bank expects to raise its year-end rate to 4.4% in 2022, continuing aggressive action against rising prices through the remainder 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’ve been tightening now for a while,” 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 expected Thursday at 8:30 am ET.