Stocks were poised to fall at the open on Thursday after strong employment data sparked concerns about more Fed rate hikes, reviving concerns about the impact of those hikes on the economy.
Futures on the Standard & Poor’s 500 Index (^GSPC) were down 0.8%, as was the Dow Jones Industrial Average (^DJI), down about 280 points. Futures in the technology-focused Nasdaq 100 Index (^IXIC) lost about 1%.
All three major indices posted losses on Wednesday, after surprisingly upbeat minutes from the Fed’s June meeting showed some policymakers were reluctant to support a pause as it was finally decided. Almost everyone supports more hikes in 2023.
Markets now see an 89% chance of a rally at the Federal Reserve’s July meeting, according to the CME FedWatch tool.
In focus Thursday are new data on the labor market and services activity in the United States due for release later, as stocks previously faced headwinds from concerns that a Fed rate hike could tip the economy into recession. The reports will serve as an appetizer for Friday’s important June jobs report.
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