U.S. stock futures pointed to a negative open on Thursday as markets take a breather from the rally following the U.S.-midterm results and turn their attention to the latest monetary policy decision by the Federal Reserve.
At around 7 a.m. ET, Dow Jones Industrial Average futures were down 71 points, indicating a decline of 28.30 points at the open. S&P 500 and Nasdaq 100 futures also pointed to losses at the start of the day.
The Fed is due to announce its latest monetary policy decision on Thursday. Market expectations suggest no change in policy, but investors will be looking for clues on whether there will be further tightening next month.
Thursday’s premarket moves come after the major stock indexes posted sharp gains following the U.S. midterm election.
On Wednesday, the S&P and Dow had their best rally since 1982 on the back of the midterms. The outcome, with Republicans holding control of the Senate and the Democrats getting back control of the House, was widely expected and lifted another layer of uncertainty among the many that investors are dealing with.
On the data front, there will be jobless claims due at 8.30 ET – a key indicator also to forecast the future rate hiking path.