U.S. stock futures slightly surged on Thursday morning following a big plunge in the major averages as traders swallowed another large rate hike from the Federal Reserve.
Dow Jones Industrial Average futures added 83 points, or 0.3%. S&P 500 futures and Nasdaq 100 futures gained about 0.2% apiece.
On Wednesday, the Dow Jones Industrial Average fell 522 points, or 1.70%.The S&P 500 lost 1.71%, and the Nasdaq Composite shed 1.79%. The big plunge came amid a volatile period after the Fed’s third consecutive 0.75 percentage point rate increase. At one point the Dow was up more than 300 points.
Still, stocks closed lower, continuing the recent selloff trend as investors evaluated the Fed’s latest comments. Policymakers insisted on hiking rates as high as 4.6% in 2023 before pulling back in the fight against inflation, spurring fears on Wall Street that the economy could fall into a recession.
The central bank expects to raise its year-end rate to 4.4% in 2022, continuing aggressive action against rising prices through the remainder 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 now for a while,” he added, noting that the impact of the tightening could lead to a recession.
On the economic front, the latest data on weekly jobless claims is expected Thursday at 8:30 a.m. ET.