Stock futures were falling sharply Thursday after the Federal Reserve boosted interest rates the most since 1994, and signaled to Wall Street it would remain aggressive in its campaign to cool historically high inflation.
Renewed recession fears were pushing stocks lower. Contracts linked to the
Dow Jones Industrial Average
fell 571 points, or 1.9%, to 30,080, and
futures were down 2.4%. Futures on the tech-heavy
declined 2.7%. Some of the bigger tech names traded on the index were slumping.
(ticker: AAPL) was falling 2.6%,
(AMZN) was down 2.8%, and
(MSFT) dropped 2.5%.
Overseas, the Bank of England raised interest rates for the fifth straight time, by 25 basis points to 1.25% on Thursday, and the Swiss National Bank surprised with a rate hike of 50 basis points.
Stocks in the U.S. rose Thursday after the Fed agreed to increase interest rates by three-quarters of a percentage point, and Fed Chairman Jerome Powell suggested the central bank could hike rates by that much again next month to control inflation that is running at 40-year highs.
Powell, however, also said the big rates hike was “an unusually large one” and that Fed officials “do not expect moves of this size to be common.”
“Hopes that the Fed…
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