Stocks futures drop as yields rise after U.S. Fed signals higher-for-longer interest rates

After the U.S. Federal Reserve signaled that another rate hike was in the offing this year, stock index futures fell on Thursday pressured by a decline in growth stocks as Treasury yields jumped.

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Rate-sensitive stocks including Apple, Meta Platforms, Alphabet, and Nvidia fell between 0.6% and 2.3% in premarket trading as the two-year and 10-year Treasury yields , scaled multi-year highs.

The U.S. central bank delivered a widely anticipated pause on Wednesday and revised economic projections higher with warnings that the battle against inflation was far from over, prompting a weak session for Wall Street.

The Fed’s updated quarterly projections showed chances of the key rate being lifted one more time in 2023 to a peak range of 5.50%-5.75% and significantly tighter rates through 2024 than previously expected.

MacDailyNews Note: Currently in pre-market trading Apple shares are off $1.47 (-0.84%) to $174.02.

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