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.
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.
Oil prices recovered from a steep drop in the previous session, supported by tight oil supply and peak summer consumption.
U.S. West Texas Intermediate (WTI) crude futures climbed to $115 a barrel. Brent crude futures rose to $118 a barrel.
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 0.5%, Hong Kong’s Hang Seng shed 1.3% and China’s Shanghai Composite fell 0.6%.
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.
|I:DJI||DOW JONES AVERAGES||30668.53||+303.70||+1.00%|
|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.
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.