U.S. stock futures moved off three month lows Thursday as buyers returned following another Fed-induced sell-off.How are stock index futures trading
S&P 500 futures
rose 15 points, or 0.4%, to 3821
Dow Jones Industrial Average futures
climbed 122 points, or 0.4%, to 30404
Nasdaq 100 futures
eased 40 points, or 0.3%, to 11750
On Wednesday, the Dow Jones Industrial Average
fell 522 points, or 1.7%, to 30184, the S&P 500
declined 66 points, or 1.71%, to 3790, and the Nasdaq Composite
dropped 205 points, or 1.79%, to 11220. The S&P 500 is down 20.5% for the year, and the Nasdaq Composite has lost 28.3% over that period.
What’s driving markets U.S. stock futures are trying to bounce off three-month lows delivered after the Federal Reserve produced another jumbo rate hike and reiterated its commitment to crush inflation, even it that meant a possible recession, and by extension lower company earnings. “We will keep at it until the job is done,” Chair Jay Powell said in a news conference on Wednesday after the Fed increased borrowing costs for the third time in a row by 75 basis points to a range of 3% to 3.25%. “I wish there were a painless way to do that. There isn’t,” he added as the Fed projected it may have to raise rates as high as 4.4% by the end of the year and that unemployment may rise and the economy slow sharply. “Markets were all over the place after the meeting finished but risk assets ultimately sold off after an initial rally,” noted strategists at Deutsche Bank in a Thursday morning note. Ipek Ozkardeskaya, senior analyst at Swissquote, agreed that ultimately equity traders did not like what they heard from the Fed. “‘Ugly’ is a good word to describe the market mood this morning. The selloff will likely continue,” she added. Still, S&P 500 futures reversed early session losses to enter positive territory as they approached the opening bell. However, the CBOE Vix index
a measure of expected S&P 500 volatility known as Wall Street’s “fear gauge,” was hovering above 27, near its highest level since the end of June and well above the long run average of 20.
The latest stock market relapse leaves the benchmark S&P 500 precariously placed, having decisively broken below per …