Stock Market News
U.S. stock markets were set to retreat on Thursday, continuing the previous day’s fall as investors interpreted the Federal Reserve as putting out a hawkish message alongside its decision to hold rates steady.
Dow Jones Industrial Average futures were down 80 points, or 0.2%. S&P 500 futures dropped 0.4% and Nasdaq 100 futures fell 0.5%.
Traders look to have interpreted the Fed’s decision and subsequent economic projections as signaling a hawkish stance overall, despite Fed Chairman Jerome Powell subsequently focusing on data dependence in his press conference. The yield on benchmark 10-year Treasury notes stood at 4.419% early on Thursday, around its highest levels since late 2007.
“Overall, the Fed sent a clear message that they think rates will stay high for longer, and the markets took this on board,” Deutsche Bank’s Jim Reid wrote in a research note.