Brendan McDermid | Reuters
US stock futures fell on Thursday morning after a volatile rally in the major averages as traders weighed another big rate hike by the Federal Reserve.
Dow Jones Industrial Average futures fell 109 points, or 0.36%. S&P 500 and Nasdaq 1[ads1]00 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 fell 1.71%, and the Nasdaq Composite fell 1.79%.
The Federal Reserve went through a third consecutive increase of 0.75 percentage points. Policymakers pledged to continue raising interest rates as high as 4.6% in 2023 before backing off in the fight against inflation, fueling fears on Wall Street that the economy could tip into recession.
The central bank expects to raise the annual interest rate to 4.4% in 2022, and continues aggressive action against rising rates throughout 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’ve been tightening for some time now,” he added, noting that the impact of the tightening could lead to a recession.
On the economic front, the latest weekly jobless claims data is expected Thursday at 8:30 a.m. ET.