Equity futures muted Thursday morning after losses during daily trading session after the Federal Reserve announced another rate hike, indicating no pivot or rate cut soon it was done.
Futures tracking the Dow Jones Industrial Average rose 9 points (0.03%). Both S&P 500 futures and Nasdaq 100 futures were broadly flat.
shares of Qualcomm, Roku When Fortinet It fell after reporting disappointing quarterly results and future outlook.
Traders expected the central bank to raise rates by 0.75 percentage points, initially reading the Fed’s statement as dovish and boosting stocks.
These increases came when Federal Reserve Chairman Jerome Powell said it was “premature” to talk about a moratorium on rate hikes and that the final rate would likely be higher than previously stated. reversed.
Traders react as Federal Reserve Chairman Jerome Powell speaks on screens on the floor of the New York Stock Exchange (NYSE) in New York City, November 2, 2022.
Brendan McDiarmid | Reuters
“Since our last meeting, the final level of interest rates has been implied to be higher than previously expected, and we have data to come.”
The Dow Jones Industrial Average ended Wednesday’s trading session down 416 points, or 1.3%, mitigating a significant October rally. The S&P 500 was down 2% for him and the Nasdaq Composite was down 2.8% for him.
Markets may continue to seesaw until inflation subsides and the Fed has stopped raising rates. Data showing the U.S. economy is not slowing as central banks tighten policy could weigh on equities.
The next big report is October’s nonfarm payrolls, due out on Friday.
“If you get good job numbers — high unemployment — the market is going to be in big trouble,” Guy Adami, adviser advocacy director at Private Advisor Group, told CNBC. fast money. “
