Investors’ concern that there might be one more Federal Reserve rate hike before the year is out caused stock futures to decline on Thursday.
The Dow Jones Industrial Average futures fell 93 points, or 0.3%, on the day. The S&P 500 futures fell by 0.4%, while the Nasdaq 100 futures fell by 0.6%.
KB Home, a home builder, lost 2% despite outperforming Wall Street’s forecasts on both the top and bottom lines. The premarket on Thursday saw a decrease of about 2% for the marketing automation company Klaviyo, which had its public market debut on Wednesday.
FedEx defied the downward trend and increased 5% after reporting adjusted earnings of $4.55 per share in its fiscal first quarter, beating analysts’ estimates of $3.73 per share, according to LSEG.
These actions come after a depressing Wednesday session.
Following the Federal Reserve’s announcement that interest rates will remain unchanged but that it anticipates another rate hike before the end of the year, the three major averages closed at session lows. A soft landing for the economy, according to Fed Chair Jerome Powell, was still conceivable but was not his preferred scenario.
Source (CNBC)
