The major U.S. index futures are pointing to a roughly flat opening on Thursday, with stocks likely to show a lack of direction following the sell-off seen after the Federal Reserve announcement on Wednesday.
Traders may be reluctant to make significant moves on the heels of recent volatility on Wall Street, which has seen the major averages tumble to their lowest levels in over a year.
Some investors could look to pick up stocks at reduced levels, although recent efforts to push the markets higher have been thwarted by concerns about the outlook for global economic growth.
Worries the Federal Reserve plans to continue raising interest rates despite signs of slowing growth is likely to keep any buying interest subdued.
Stocks saw typically post-Fed decision volatility in afternoon trading on Wednesday before ending the session sharply lower. With the steep drop late in the day, the major averages finished the session at their lowest closing levels in over a year.
The major averages climbed off their lows of the session going into the close but remained firmly negative. The Dow tumbled 351.98 points or 1.5 percent to 23,323.66, the Nasdaq plummeted 147.08 points or 2.2 percent to 6,636.83 and the S&P 500 slumped 39.20 points or 1.5 percent to 2,506.96.
The late-day sell-off on Wall Street came after the Federal Reserve announced its widely expected decision to raise interest rates by a quarter point.
While the Fed also forecast fewer than previously estimated rate hikes next year, the central bank's tone was not as dovish as some traders had hoped.
The central bank said its Federal Open Market Committee decided to raise the target range for the federal funds rate by 25 basis points to 2.25 percent to 2.50 percent.
The closely watched accompanying statement noted the labor market has continued to strengthen and that economic activity has been rising at a strong rate.
Annual rates of both overall inflation and core inflation were also said to remain near the Fed's 2 percent target, with indicators of longer-term inflation expectations also little changed.
The Fed also reiterated that further gradual increases in interest rates would be consistent with the FOMC's mandate to foster maximum employment and price stability.
However, eagle-eyed Fed watchers noticed the inclusion of the word "some" in the statement regarding further gradual rate increases.
In another indication the Fed plans to raise rates less than previously anticipated, the central bank's projections point to two rate hikes in 2019 compared to the previous forecast for three.
The Fed's median projection for the federal funds rate in 2019 was reduced to 2.9 percent from the 3.1 percent expected in September.
The median forecasts for rates in both 2020 and 2021 were also lowered to 3.1 percent from 3.4 percent, while the projection for longer run rates was downwardly revised to 2.8 percent from 3.0 percent.
The central bank also lowered its forecasts for real GDP growth in 2018 and 2019 to 3.0 percent and 2.3 percent, respectively. The Fed previously projected 3.1 percent growth in 2018 and 2.5 percent growth in 2019.
While once again calling risks to the economic outlook roughly balanced, the Fed added that it will continue to monitor global economic and financial developments and assess their implications for the economic outlook.
Following today's rate increase, Fed Chairman Jerome Powell said rates are closer to what the central bank views as a neutral level that is neither restrictive nor stimulative.
"Where we are right now is the lower end of neutral," Powell said in his post-meeting press conference. "There are implications for that."
Paul Ashworth, Chief U.S. Economist at Capital Economics, said today's widely anticipated rate hike was tempered by the slight downward revision to Fed officials' projections for additional rate increases in 2019 and beyond.
"Still, with the vote unanimous and the median rate projection for end-2019 revised down by only 20bp, this is hardly the 'dovish hike' that some were anticipating," Ashworth said.
"On balance, we still expect the Fed to hike twice in the first half of next year before a slowdown in GDP growth to below potential forces it to the side lines," he added. "We then expect the Fed to reverse course and cut rates by 75bp in 2020.
The announcement from the Fed overshadowed a report from the National Association of Realtors released unexpectedly showing a significant increase in existing home sales in November.
NAR said existing home sales surged up by 1.9 percent to an annual rate of 5.32 million in November after jumping by 1.4 percent to a rate of 5.22 million in October. Economists had expected existing home sales to drop by 0.6 percent.
Despite the second consecutive monthly increase, existing home sales in November were down by 7.0 percent compared to the same month a year ago.
Gold stocks moved sharply lower over the course of the session after initially moving to the upside. After reaching its best intraday level in over four months, the NYSE Arca Gold Bugs Index plunged by 5.8 percent.
The sharp pullback by gold stocks came as the price of the precious metal came under pressure in electronic trading following the Fed announcement.
Substantial weakness also emerged among semiconductor stocks, as reflected by the 4.2 percent nosedive by the Philadelphia Semiconductor Index. The index tumbled to its lowest closing level in over a year.
Chip maker Micron (MU) posted a steep loss after reporting weaker than expected fiscal first quarter revenues and providing disappointing guidance.
Oil service, transportation, and computer hardware stocks also saw significant weakness, moving lower along with most of the other major sectors.
Commodity, Currency Markets
Crude oil futures are tumbling $1.33 to $46.84 a barrel after jumping $1.57 to $48.17 on Wednesday. Meanwhile, an ounce of gold is trading at $1,260, up $3.60 compared to the previous session's close of $1,256.40. On Wednesday, gold rose $2.80.
On the currency front, the U.S. dollar is trading at 111.59 yen compared to the 112.48 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1458 compared to yesterday's $1.1376.
Asia
Asian stocks fell on Thursday, as global growth worries persisted and markets were surprised by the Federal Reserve's commitment to tightening monetary policy despite rising risks to growth.
Chinese shares closed at two-month lows even though the country's central bank rolled out a new tool to support lending to small and private firms.
The benchmark Shanghai Composite Index ended down 13.30 points or 0.5 percent at 2,536.27, while Hong Kong's Hang Seng Index dropped 241.86 points or 0.9 percent to 25,623.53.
Japanese shares hit a 15-month low as the Fed sounded less dovish than hoped and the Bank of Japan maintained its ultra-loose monetary policy and reaffirmed its view on the economy, citing stagnant inflation and a looming consumption tax hike next year.
The Nikkei 225 Index plunged 595.34 points or 2.8 percent to 20,392.58, the lowest closing level since September of 2017. The broader Topix closed 2.5 percent lower at 1,517.16, the lowest closing level since April of 2017.
Shipping companies, electronics makers and technology companies fell sharply, with Tokyo Electron, Panasonic, Nippon Yusen and Mitsui OSK Lines tumbling 4-7 percent. SoftBank Corp. dropped 4.7 percent after losing 15 percent on the first day of listing the previous day.
Meanwhile, Takeda Pharmaceutical soared 7 percent after announcing the listing of ADRs on the New York Stock Exchange will commence on December 24th.
Australian markets fell sharply to hit a two-year low after the Fed's less dovish than expected statement. The benchmark S&P/ASX 200 Index tumbled 74.80 points or 1.3 percent to 5,505.80, while the broader All Ordinaries Index ended down 77.10 points or 1.4 percent at 5,572.90
Gold miners Evolution, Newcrest and St Barbara lost 2-5 percent as the dollar recovered following the Fed decision.
MYOB Group slumped 14 percent as U.S. private equity giant KKR & Co. cut its buyout price for the accounting software firm.
The big four banks fell between 0.7 percent and 1.6 percent, a day after chiefs at ANZ and NAB faced investor backlash over executive pay.
In economic news, Australia's jobless rate came in at a seasonally adjusted 5.1 percent in November. That exceeded expectations for 5.0 percent, which would have been unchanged from the October reading.
The Australian economy added 37,000 jobs last month, blowing away expectations for an increase of 20,000 jobs following the gain of 32,800 in the previous month.
Europe
European stocks hit two-year lows on Thursday before recovering some lost ground after the U.S. Federal Reserve reiterated its commitment to tighten monetary policy despite rising risks to growth.
The Fed raised interest rates by a quarter point, as widely expected, and indicated it still expects to hike rates twice next year. Investors were disappointed as the central bank's tone was not as dovish as some had hoped.
Earlier in the day, the Bank of Japan maintained its ultra-loose monetary policy and reaffirmed its view on the economy, citing stagnant inflation and a looming consumption tax hike next year.
Sweden's central bank unexpectedly raised its key interest rate for the first time in over seven years. The Executive Board raised the repo rate by a quarter-basis points to -0.25 percent, which was the first hike since July 2011.
While the U.K.'s FTSE 100 Index has dipped by 0.3 percent, the German DAX Index is down by 1.2 percent and the French CAC 40 Index is down by 1.7 percent.
Mining giants Anglo American, Antofagasta and Glencore have dropped after the U.S. said it would withdraw sanctions on Russian aluminum producer United Company Rusal.
Bourbon has also slumped in Paris on news it is searching for new financial partners to ensure its development and the implementation of a strategic plan.
Renault has also declined even as a Tokyo court rejected a request from prosecutors to extend the detention of Nissan Motor Co's ousted chairman, Carlos Ghosn.
Meanwhile, Indivior has risen in choppy trading, a day after it announced the launch of a cheaper version of its opioid addiction treatment drug.
U.S. Economic Reports
After reporting a notable decrease in first-time claims for U.S. unemployment benefits in the previous week, the Labor Department released a report showing initial jobless claims rebounded in the week ended December 15th.
The report said initial jobless claims rose to 214,000, an increase of 8,000 from the previous week's unrevised level of 206,000. Economists had expected jobless claims to climb to 216,000.
A separate report from the Philadelphia Federal Reserve said manufacturing activity in the Philadelphia region continued to grow but remained subdued in the month of December.
The report said the diffusion index for current general activity dropped to 9.4 in December after tumbling to 12.9 in November.
While a positive reading still indicates growth in regional manufacturing activity, economists had expected the index to rise to 15.0.
At 10 am ET, the Conference Board is scheduled to release its report on leading economic indicators in the month of November.
The Conference Board's leading economic index is expected to come in unchanged in November after inching up by 0.1 percent in October.
At 11 am ET, the Treasury Department is due to announce the details of next week's auctions of two-year, five-year, and seven-year notes.
Stocks In Focus
Shares of Tilray (TLRY) are moving sharply higher in pre-market trading after the cannabis producer announced a partnership with AB InBev to research non-alcohol beverages containing tetrahydrocannabinol and cannabidiol.
Household products maker Newell Brands (NWL) is also likely to see initial strength after activist investor Carl Icahn increased his stake in the company to 9.89 percent.
Shares of Herman Miller (MLHR) may also move to the upside after the office furniture maker reported better than expected fiscal second quarter results and provided upbeat guidance for the current quarter.
On the other hand, shares of Spectrum Pharmaceuticals (SPPI) are seeing substantial pre-market weakness after the FDA did not grant Breakthrough Therapy Designation to its lung cancer drug poziotinib.
Food producer Conagra Brands (CAG) may also come under pressure after reporting fiscal second quarter earnings that exceeded analyst estimates but on weaker than expected revenues. Conagra also forecast weaker than expected full-year earnings.
Shares of Pier 1 Imports (PIR) is also likely to see initial weakness after the home furnishings retailer said its CEO Alasdair James has stepped down and will be replaced on an interim basis by border member Cheryl Bachelder.
Pier 1 also said its board has initiated a process to evaluate a full range of strategic alternatives to enhance shareholder value.
For comments and feedback contact: editorial@rttnews.com
April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.