Traders working at the New York Stock Exchange (NYSE), on Sept. 20th, 2023.
NYSE
Stock futures were all lower on Thursday as investors parsed through the Federal Reserve’s projections made earlier in the day.
Futures tied to the Dow Jones Industrial Average were lower by 57 points, or 0.16%. S&P 500 futures were down 0.28%, while Nasdaq 100 futures edged lower by 036%.
In after-hours action, FedEx gained 5% after the delivery company posted adjusted earnings of $4.55 per share in its fiscal first quarter, while analysts called for $3.73 per share, per LSEG. Homebuilder KB Home fell 2%, despite exceeding Wall Street’s expectations on the top and bottom line.
Marketing automation firm Klaviyo, which debuted on the public markets Wednesday, slipped nearly 2% after the closing bell.
These moves follow a bleak ending to Wednesday’s trading session.
The three major averages closed at session lows after the Federal Reserve said it would leave interest rates unchanged but expects another rate hike before the end of the year. Fed Chair Jerome Powell had commented that a soft landing for the economy was still possible, but not his baseline scenario.
“I think the surprise actually is the optimism about the economic outlook,” said Jimmy Chang, chief investment officer at Rockefeller Global Family Office, noting the upward revision on GDP growth for 2023. “It almost feels like they’re projecting a goldilocks soft landing outlook,
The top-of-mind economic indicator for Chang is the 10-year Treasury yield, which he said can put pressure on the banking system. During Wednesday’s session, the 10-year note reached levels not seen since November 2007, while the 2-year yield hit its highest point since July 2006.
Additional economic data awaits traders on Thursday, with weekly jobless claims due before the opening bell, as well as existing home sales data out later that morning.