Dow futures slump over 500 points as post-Fed meeting gains evaporate
U.S. stock index futures slumped early Thursday, as the gains seen after the Federal Reserve’s...
U.S. stock index futures slumped early Thursday, as the gains seen after the Federal Reserve’s biggest interest rate hike since 1994 quickly faded.
Futures on the Dow Jones Industrial Average YM00, -1.61% fell 507 points, or 1.6%, to 30,144.
Futures on the S&P 500 ES00, -1.94% dropped 74 points, or 2%, to 3,719.50.
Futures on the Nasdaq 100 NQ00, -2.27% shed 254 points, or 2.2%, to 11,375.
On Wednesday, the Dow DJIA, +1.00% rose 304 points, or 1%, while the S&P 500 SPX, +1.46% rose 1.5% as the indexes snapped a bruising five-day losing streak. The Nasdaq Composite COMP, +2.50% ended with a gain of 2.5%.
Environmentalists were also critical of the administration of President Joe Biden for scheduling the sales, after the President during his term and along the campaign trail vowed to reduce pollution caused by extraction in the U.S.
MarketWatch: Dow ends 300 points higher after Fed delivers biggest rate hike since 1994
All three major stock benchmarks closed sharply higher Wednesday, after the Federal Reserve said it was...
All three major stock benchmarks closed sharply higher Wednesday, after the Federal Reserve said it was raising its benchmark interest rate by three-quarters of a percentage point in an effort to fight high inflation. The Dow Jones Industrial Average DJIA, 1.00% rose around 300 points, or 1% higher, while the S&P 500 SPX, +1.46% gained 1.5% and the Nasdaq Composite COMP, 2.50% jumped 2.5%, according to preliminary FactSet data. The Fed's rate hike is the largest since 1994, bringing its benchmark rate to a range of 1.5% to 1.75%.
The Fed now believes inflation will top 5% in 2022, but fall rapidly after that
The Federal Reserve on Wednesday predicted U.S. inflation would exceed 5% by the end of 2022 — much...
The Federal Reserve on Wednesday predicted U.S. inflation would exceed 5% by the end of 2022 — much higher than its most recent forecasts — and underscoring its more aggressive strategy in raising interest rates.
The Fed also plans to raise the rate to as high as 3.8% by 2023, according to its latest “dot plot.” After that, rates are forecast to decline.
The bank’s more hawkish approach after several years of heavily stimulating the economy comes in the wake of another poor reading on inflation. The consumer price index jumped 1% in May to push the increase over the past year to a 40-year high of 8.6%.
The Fed raises interest rates three-quarters of a point in bid to stem inflation
The Federal Reserve on Wednesday demonstrated it wanted to be aggressive in its fight against inflation,...
The Federal Reserve on Wednesday demonstrated it wanted to be aggressive in its fight against inflation, approving its largest rate hike in almost three decades and signaling that its benchmark rate will rise close to 4% by the end of next year.
At the central bank’s meeting that ended Wednesday, officials said they would hike the federal-funds target rate by three-quarters of a percentage point to between 1.5% and 1.75%.
In its “dot-plot forecast,” the Fed said it planned to raise its benchmark interest rate to a mid-range of 3.4% by the end of this year and to 3.8% by the end of 2023. Fed officials anticipate being able to cut rates slightly in 2024.
There was only one dissent. Kansas City Fed President Esther George preferred a half-point hike.
