Stocks fell again on Thursday, following back-to-back losing sessions, as traders weighed the Federal Reserve’s plans to tighten monetary policy.
Futures on the Dow Jones Industrial Average fell 110 points or 0.3%, S&P 500 futures dipped 0.2%, and Nasdaq 100 futures slid 0.3%.
Shares of HP Inc surged 15% in the premarket after Warren Buffett’s Berkshire Hathaway disclosed a stake in the tech hardware maker.
The Fed on Wednesday released the minutes from its March meeting, which showed that officials planned to reduce their trillions in bond holdings with a consensus amount around $95 billion. Meanwhile, policymakers indicated that one or more 50 basis-point interest rate hikes could be warranted to battle surging inflation.
“The minutes from the latest FOMC meeting portray a higher level of urgency than previous communication as the Fed has circled on a commitment to run the balance sheet down faster than market participants may have expected,” said Charlie Ripley, senior investment strategist at Allianz Investment Management.
Officials “generally agreed” that a maximum of $60 billion in Treasurys and $35 billion in mortgage-backed securities would be allowed to roll off, phased in over three months and likely starting in May.