Brendan McDermid | Reuters
US stock futures fell Wednesday night after a volatile session in major averages as traders weighed in on another large rate hike from the Federal Reserve.
The Dow Jones Industrial Average futures fell 210 points, or 0.69%. S&P 500 and Nasdaq 100 futures fell 0.93% and 1.17% respectively.
During Wednesday’s regular session, the Dow Jones Industrial Average slipped 522 points, or 1.70%, despite jumping over 300 points earlier in the day. The S&P 500 lost 1.71% and the Nasdaq Composite 1.79%.
The Federal Reserve experienced a third consecutive hike of 0.75 percentage points. Politicians pledged to continue raising rates to 4.6% in 2023 before retreating in the fight against inflation, fueling fears on Wall Street that the economy could fall into a recession.
The central bank expects to raise the year-end rate to 4.4% in 2022, continuing aggressive action against price increases for the rest of the year.
“I think they should slow down,” DoubleLine Capital CEO Jeffrey Gundlach said Wednesday in CNBC’s “Closing Bell: Overtime.” “Monetary policy has delays that are long and variable, but we’ve been tightening 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 Thursday at 8:30 am ET.