Dow is set to slide triple digits after the Fed says it sees ‘further gradual increases’ in rates


U.S. stock futures pointed to a negative open on Friday as investors digested the latest comments from the Federal Reserve.

Around 6:20 a.m. ET, the Dow Jones Industrial Average futures were indicating a drop of about 125 points. S&P 500 and Nasdaq futures were also in the red.

The Fed on Thursday decided to leave its benchmark interest rate unchanged, as was expected, but comments by the U.S. central bank suggested it was on course to continue hiking rates. Although a statement released by the institution noted a moderation in business investment, it said the bank still expects “further gradual increases” in the prime lending rate. Traders had been on edge last month due to concerns over the Fed’s rate hiking path.

Several Fed members will deliver speeches throughout the day on Friday. New York Fed President John Williams is holding a speech at 8:30 a.m. ET, Philadelphia Fed President Patrick Harker is making a speech at 8:50 a.m. ET, and Fed Vice Chairman of Supervision Randal Quarles is speaking at 9 a.m. ET.



READ SOURCE

ALSO READ   Walmart will chauffeur shoppers in self-driving Waymo cars

Leave a Reply