U.S. equity futures were higher early on Thursday as traders digested the latest policy update from the Federal Reserve.
Futures tied to the Dow Jones Industrial Average added 183 points, or 0.57%. S&P 500 futures rose 0.69%and Nasdaq 100 futures advanced by 0.83%.
The major averages tumbled in regular trading, with the Dow losing more than 530 points, or 1.6%, after rising as much as 201 points earlier in the day. The S&P 500 and Nasdaq Composite each dropped more than 1.6%.
The Fed’s decision and subsequent comments by Chair Jerome Powell at the conclusion of the policymakers’ two-day meeting weighed on stocks.
The central bank raised rates by 25 basis points, as expected. It also hinted that its inflation-fighting tightening campaign could be nearing the end, with the removal of the phrase “ongoing increases” from its statement.
“The Fed’s vote of confidence in the economy is great news, but it’s also a reminder that inflation is still the main issue in policymakers’ minds,” said Callie Cox, U.S. analyst at eToro. “Investors thought the banking crisis could weigh on growth enough to ease inflation, but the Fed isn’t taking any chances. Rates could stay high until we see an obvious deceleration in the job market. The trades we’ve seen dominate markets over the past two weeks could get unwound quickly, too.”
A sharp drop in regional bank stocks also weighed on the market, as well as comments from Treasury Secretary Janet Yellen, who said the U.S. is not currently working on “blanket insurance” for bank deposits, in comments to the U.S. Senate appropriations subcommittee.
Traders are looking forward to the weekly jobless claims update at 8:30 a.m. ET. New home sales data will also be released.
In earnings, General Mills and Darden Restaurants are scheduled to report their latest financial results Thursday.
Source link: https://www.cnbc.com/2023/03/22/stock-market-today-live-updates.html