Investing.com — U.S. stock index futures were marginally lower Thursday night as Wall Street recovered from a weak previous session in which the Federal Reserve signaled a slower pace of easing next year.
The Federal Reserve cut interest rates by 25 basis points (bp) on Wednesday, but all three major indexes fell sharply on expectations that the rate cut in 2025 would be smaller than expected.
It fell 0.2% to 5,922.0 points and fell 0.3% to 21,312.55 points by 19:39 ET (00:39 GMT). It fell 0.2% to 42,709.0 points.
Investors evaluate the weekly employment and GDP revisions as the Fed is heavily hawkish
The Fed's rate cut on Wednesday brought borrowing rates down to a range of 4.25% to 4.50%, but policymakers had expected only two rate cuts in 2025, compared to previous expectations of four. .
Chairman Jerome Powell said further cuts would depend on sustained progress in containing inflation, reflecting policymakers' adjustment to potential economic changes under President Donald Trump's incoming administration.
Traders now expect a decline of just one quarter point in 2025 as the economy continues to recover and inflation remains high.
Thursday's figures showed a bigger-than-expected drop last week, suggesting a gradual slowdown in the labor market.
Other data showed the U.S. economy was strong in the third quarter, confirming the Fed's view that economic growth is resilient.
Wall Street Stabilizes After Downturn, Government Shutdown Approaching
Wall Street indexes rebounded early Thursday following Wednesday's declines, but closed largely unchanged as investors still assessed the impact of the Fed's hawkish tone.
Wall Street indexes fell sharply on Wednesday on expectations that interest rates will remain high for longer than expected, with big losses in the tech sector.
Technology stocks made up for some of the ground they lost in the previous session, but still fell.
Bucking the trend, NVIDIA Corporation (NASDAQ:) stock rose 1.3%, while Tesla Inc (NASDAQ:) fell nearly 1% and Intel Corporation (NASDAQ:) fell nearly 1.2%. Broadcom Inc. (NASDAQ:) stock fell 2.3% on Thursday.
Shares of Micron Technology Inc. (NASDAQ:) plummeted nearly 17% a day after the company announced a weaker-than-expected earnings outlook.
It fell 0.1% to 5,867.08 points, falling slightly to 19,369.58 points.
The stock rose slightly to 42,342.24 points, barely edging its 11-session decline.
On Thursday, the U.S. House of Representatives decisively rejected a Republican-backed funding proposal aimed at preventing a government shutdown. The government funding is set to expire at midnight Friday.
If lawmakers fail to meet the deadline, the government will enter a partial shutdown, cutting off funding for operations ranging from border security to national parks and suspending paychecks for more than 2 million federal workers. Become.
A potential closure could affect Christmas travel, as well as other public services.
