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Stock futures are up after a volatile session following the Fed’s latest rate hike

Stock futures are up after a volatile session following the Fed’s latest rate hike

Stock futures were slightly higher on Wednesday evening after losses during the daily trading session after the Federal Reserve delivered another rate hike and signaled that no pivot or rate cut is coming soon.

Futures tied to the Dow Jones Industrial Average rose 63 points, or 0.2%. S&P 500 futures and Nasdaq 1[ads1]00 futures were 0.25% and 0.33% higher, respectively. Shares of Qualcomm, Year and Fortinet fell after reporting disappointing quarterly results and forward guidance.

Traders had anticipated the central bank’s 0.75 percentage point rate hike and initially read the Fed’s statement as dovish, sending stocks higher.

Those gains reversed when Federal Reserve Chairman Jerome Powell said it was “too early” to talk about a pause in rate hikes and that the terminal rate was likely to be higher than previously indicated.

Traders react as Federal Reserve Chairman Jerome Powell speaks on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, November 2, 2022.

Brendan McDermid | Reuters

“We still have some way to go, and incoming data since our last meeting suggests that the final rate level will be higher than previously expected,” he said.

The Dow Jones Industrial Average ended Wednesday’s trade 416 points lower, or down 1.3%, paring its significant October gain. The S&P 500 fell 2% and the Nasdaq Composite fell 2.8%.

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

The next important report is the non-farm payrolls for October, due out on Friday.

“You get a good number of jobs, in other words a good unemployment rate that doesn’t go higher, then the market is in a lot of trouble,” Guy Adami, director of advisory counsel at Private Advisor Group, said on CNBC’s “Fast Money.”

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