Stock futures varied after the Fed’s update and before more economic data

Stock futures were mixed Thursday morning after the Fed’s latest policy update.

Futures contracts linked to the Dow Jones Industrial Average added 44 points. S&P 500 futures were up 0.1% and Nasdaq 100 futures were down slightly.

In regular trading, the Dow Jones was down 142 points, while the S&P 500 was down 0.61% and the Nasdaq Composite was down 0.76%.

Major indices reacted negatively as investors digested the Fed’s latest comments after a Boost your borrowing rate overnight. The central bank said it would continue to raise interest rates until 2023 and expected a higher-than-expected interest rate of 5.1%. With Wednesday’s rise of half a percentage point, the target range for rates is currently between 4.25% and 4.5%, the highest in 15 years.

“The Fed put a bar on Santa’s sleigh,” said Silvia Jablonski, CEO and chief investment officer at Defiance ETFs.

I also noticed the tone Federal Reserve Chairman Jerome Powellwho in his speech on Wednesday afternoon sounded “tough” and made it clear that he “has no plan to stop or take a reverse course.”

“It will be higher for longer and monetary policy will be more restrictive than he thought,” Jablonski said. “Fed policy will hold the market for a while longer. Although we like the news and would like to see CPI prints like the most recent one that led to a short-term rally, this should give us some volatility in the near term.”

Despite positive improvements such as modest growth, spending and production, Powell indicated that he is here to stay The job gains involved are very strong And the unemployment rate is very good for the Fed’s fight against inflation.

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Investors will have another batch of economic data to digest on Thursday. Retail sales, unemployment claims, and the Philly Fed Manufacturing Index are due at 8:30 AM ET.

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