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Sunday, July 3, 2022

Stock futures plunge following post-Fed decision rally

U.S. equity futures fell Thursday morning as the post-Fed decision relief rally paused.

The major futures indexes suggest a drop of nearly 2.00%, or more than 500 Dow points when the opening bell rings.

Shares of Apple are taking a hit in remarket trading, down nearly 3%.

Traders work on the floor of the New York Stock Exchange. (REUTERS/Brendan McDermid )

The Federal Reserve raised its key interest rate by three-quarters of a point and signaled more rate hikes were coming to fight inflation.

The yield on the 10-year Treasury pulled back to 3.34% from 3.48% on Thursday.

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Oil prices turned choppy Thursday morning following a steep drop in the previous session, supported by tight oil supply and peak summer consumption.

U.S. West Texas Intermediate (WTI) crude futures traded at $114 a barrel. Brent crude futures traded at $118 a barrel.

FED RAISES INTEREST RATE BY 75-BASIS POINTS IN HISTORIC MOVE TO FIGHT INFLATION

The economic agenda consists of reports on weekly jobless claims, housing starts and permits and manufacturing in the mid-atlantic region.

Bitcoin traded above $21,000 and enters Thursday on a nine-day losing streak.

In Asia, Japan’s benchmark Nikkei 225 added 0.4%, Hong Kong’s Hang Seng shed 2.2% and China’s Shanghai Composite fell 0.6%.

Musk & Twitter headquarters

Tesla CEO Elon Musk and Twitter headquarters. (Photo by Tayfun Coskun/Anadolu Agency via Getty Images / Getty Images)

Among Thursday’s events, Tesla and SpaceX founder Elon Musk will talk to Twitter employees at a company town hall for the first time since he reached a deal in April to purchase the social media giant for $44 billion. Musk is slated to answer pre-submitted employee questions for roughly an hour at the virtual meeting, according to the Wall Street Journal.

Tesla shares are down more than 3% in premarket trading on reports the electric automaker is raising prices significantly across its entire lineup with some models going up by as much as $6,000, according to Electrek.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 30668.53 +303.70 +1.00%
SP500 S&P 500 3789.99 +54.51 +1.46%
I:COMP NASDAQ COMPOSITE INDEX 11099.154529 +270.81 +2.50%

On Wednesday, the S&P 500 climbed 1.5% to 3,789.99 after whipping through roller-coaster trading immediately following the Fed’s latest move.

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The Dow Jones Industrial Average swung between gains and losses before finishing 1% higher, at 30,668.53. The Nasdaq composite jumped 2.5%, to 11,099.15.

The Associated Press contributed to this report.

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