Stock futures edged higher after falling in the daily trading session after the Federal Reserve raised interest rates again and signaled there would be no near-term pivot or rate cut.
Futures linked to the Dow Jones Industrial Average edged up 63 points, or 0.2%. S&P 500 futures and Nasdaq 100 futures rose 0.25% and 0.33%, respectively.of shares Qualcomm, six six and Fortune Net It slipped after reporting disappointing quarterly results and forward guidance.
Traders had expected the Fed to raise rates by 0.75 percentage points, initially interpreting the Fed’s statement as dovish, sending stocks higher.
Those gains reversed when Fed Chairman Jerome Powell said it was “too early” to talk about a pause in rate hikes and that rates could eventually be higher than previously said.
Traders react as Federal Reserve Chairman Jerome Powell speaks on a screen on the floor of the New York Stock Exchange (NYSE) in New York City on Nov. 2, 2022.
Brendan McDermid | Reuters
“We still have some way to go and new data since the last meeting suggest that the final rate level will be higher than previously expected,” he said.
The Dow Jones Industrial Average closed down 416 points, or 1.3%, on Wednesday, undercutting a notable rebound in October. The S&P 500 fell 2% and the Nasdaq Composite fell 2.8%.
Markets are likely to remain volatile until inflation noticeably cools and the Fed stops raising rates. Any data showing the U.S. economy is not slowing due to central bank tightening could weigh on stocks.
The next big report is October nonfarm payrolls due on Friday.
Guy Adami, director of advisory advocacy at Private Advisor Group, on CNBC’s “Fast Money.”