Stock futures plunge following post-Fed decision rally

US equity futures fell Thursday morning as the post-Fed decision relief rally paused.

The major futures indexes suggest a drop of nearly 2.00%, or more than 500 Dow points when the opening bell rings.

Shares of Apple are taking a hit in remarket trading, down nearly 3%.

Traders work on the floor of the New York Stock Exchange. (REUTERS/Brendan McDermid )

The Federal Reserve raised its key interest rate by three-quarters of a point and signaled more rate hikes were coming to fight inflation.

The yield on the 10-year Treasury pulled back to 3.34% from 3.48% on Thursday.

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Oil prices turned choppy Thursday morning following a steep drop in the previous session, supported by tight oil supply and peak summer consumption.

US West Texas Intermediate (WTI) crude futures traded at $114 a barrel. Brent crude futures traded at $118 a barrel.

FED RAISES INTEREST RATE BY 75 BASE POINTS IN HISTORIC MOVE TO FIGHT INFLATION

The economic agenda consists of reports on weekly jobless claims, housing starts and permits and manufacturing in the mid-atlantic region.

Bitcoin traded above $21,000 and enters Thursday on a nine-day losing streak.

In Asia, Japan’s benchmark Nikkei 225 added 0.4%, Hong Kong’s Hang Seng shed 2.2% and China’s Shanghai Composite fell 0.6%.

Musk & Twitter headquarters

Tesla CEO Elon Musk and Twitter headquarters. (Photo by Tayfun Coskun/Anadolu Agency via Getty Images / Getty Images)

Among Thursday’s events, Tesla and SpaceX founder Elon Musk will talk to Twitter employees at a company town hall for the first time since he reached a deal in April to purchase the social media giant for $44 billion. Musk is slated to answer pre-submitted employee questions for roughly an hour at the virtual meeting, according to the Wall Street Journal.

Tesla shares are down more than 3% in premarket trading on reports the electric automaker is raising prices significantly across its entire lineup with some models going up by as much as $6,000, according to Electrek.

ticker Security last Change Change %
I:DJI DOW JONES AVERAGES 30668.53 +303.70 +1.00%
SP500 S&P 500 3789.99 +54.51 +1.46%
I:COMP NASDAQ COMPOSITE INDEX 11099.154529 +270.81 +2.50%

On Wednesday, the S&P 500 climbed 1.5% to 3,789.99 after whipping through roller-coaster trading immediately following the Fed’s latest move.

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The Dow Jones Industrial Average swung between gains and losses before finishing 1% higher, at 30,668.53. The Nasdaq composite jumped 2.5%, to 11,099.15.

The Associated Press contributed to this report.

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