Stock futures were sharply lower Thursday following the Federal Reserve’s latest policy update.
Futures tied to the Dow Jones Industrial Average fell 240 points, or 0.7%. S&P 500 futures dropped 1%, and Nasdaq 100 futures lost 1.3%.
On Tuesday, the Dow fell 142 points, while the S&P 500 declined 0.61% and the Nasdaq Composite dropped 0.76%.
The major indexes reacted negatively as investors digested the Federal Reserve’s latest comments following a boost to its overnight borrowing rate. The central bank said it will continue hiking rates through 2023 and projected a higher-than-expected terminal rate of 5.1%. With Wednesday’s half a percentage point hike, the targeted range for rates is currently 4.25% to 4.5%, which is the highest in 15 years.
“The Fed just put a roadblock in front of Santa’s sleigh,” said Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs.
She also noted…
