Traders works on the New York Stock Exchange (NYSE) on August 4, 2021.
Andrew Kelly | Reuters
Stock futures were lower in early morning trading on Thursday after Wall Street suffered a sell-off when minutes of the meeting showed that the Federal Reserve was considering a throttle before the end of the year.
Futures on the Dow Jones Industrial Average fell 170 points. S&P 500 futures and Nasdaq 100 futures were both in negative territory.
Robinhood stock tumbled more than 9% in after-hours trading after its first earnings report as a publicly traded company. The trading app reported a net loss of $ 502 million, or a loss of $ 2.16 per share, within the range specified by the company. Revenue more than doubled in the second quarter thanks to a massive surge in crypto trading.
Nvidia stock surged more than 2% after the chip giant’s quarterly earnings and revenue surpassed Wall Street estimates amid strong graphics card sales.
Central bankers at their July meeting planned to slow the pace of their monthly bond purchases likely before the end of 2021, the minutes show.
“Looking to the future, most participants noted that they believed it might be appropriate to start slowing asset purchases this year, provided the economy performs as expected,” the minutes read .
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However, committee members largely agreed that employment did not meet the Fed’s “significant further progress” benchmark before considering a rate hike.
The 30-Dow stock fell 380 points and fell for a second day while the S&P 500 was down more than 1% on Wednesday.
“The minutes reflect a Fed poised to accelerate its tapering schedule into perhaps the next few months,” said Sean Bandazian, investment analyst at Cornerstone Wealth. “Both the Fed and the market participants have learned from the taper tantrum. Although we expect fewer surprises this time around, there is still reason to believe that we will experience volatility in all areas of the market with high interest rate sensitivity.”
Investors will be monitoring new data on unemployment claims Thursday morning. Economists polled by Dow Jones expect a total of 365,000 for the week ending August 14, slightly less than the previous week’s total of 375,000.
Correction: Corrected an earlier version of this report to reflect the correct spelling of Nvidia’s name.