Stock futures drop slightly after Fed surge, META stocks fall

Stock futures were slightly lower in overnight trading after markets saw a big rally on Wednesday after another 0.75 percentage point rise from the Federal Reserve.

Futures related to the Dow Jones Industrial Average fell 27 points, or 0.08%. S&P 500 futures are down 0.12% and Nasdaq 100 futures are down 0.35%.

Shares of Meta Platforms fell 3% in extended trading on the back of disappointing quarterly results, while Ford gained more than 5% after winning the top and bottom lines, boosting its earnings. Teladoc stock eroded more than 22% after taking another big goodwill fee.

After the Fed’s rate hike, DoubleLine Capital CEO Jeffrey Gundlach told CNBC “an extra bell closing” that he believes the central bank is no longer behind the inflation curve and Powell has regained his credibility.

“This market reaction appears to be less of a sugar spike than the previous two in June and May,” Gundlash said.

The moves came hours after markets saw a broad-based rebound during regular trading on Wednesday as the central bank raised interest rates by another 75 basis points and investors continued to bet on whether the Fed could stem the rate hike without pushing the economy into recession. .

All S&P 500 sectors ended the day higher, with telecom services posting their best daily performance since April 2020.

During the regular trading session on Wednesday, the Dow Jones rose 436.05 points, or 1.4%, the S&P 500 rose 2.62% and the Nasdaq Composite closed 4.06% higher, boosted by Alphabet and Microsoft shares.

said Ed Moya, senior market analyst at Oanda.

Investors have grown increasingly concerned in recent months that the central bank’s attempts to tame high prices will push the economy closer to recession, if it has not already entered.

Federal Reserve Chairman Jerome Powell said Wednesday during a press conference that he does not believe the economy has entered a recession.

“I don’t think the United States is in a recession right now and the reason is that there are many economic areas that are doing very well,” he said.

Investors looking for more clues on the state of the economy are awaiting a reading of the second-quarter GDP due on Thursday. While two negative quarters of growth are viewed by many as stagnation, the official definition is more accurate, considering additional factors, according to the National Bureau of Economic Research.

Economists polled by Dow Jones expect the economy to have barely expanded in the last quarter after contracting 1.6% in the first.

On the earnings front, investors are looking forward to results from Apple, Amazon, Intel and Comcast due on Thursday.

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