US open: Stocks extend Fed-fuelled losses at the bell

dl exchange place wall st street pl new york city nyc ny nyse stock exchange dow jones sp nasdaq finance dollar dollars us usa united states of america — Exchange PlaceSharecast photo / Josh White

Wall Street stocks traded lower early on Thursday as market participants continued to digest the Federal Reserve's interest rate decision overnight.

As of 1510 BST, the Dow Jones Industrial Average was down 0.39% at 30,067.53, while the S&P 500 opened 0.64% weaker at 3,765.69 and the Nasdaq Composite came out the gate 0.99% softer at 11,109.26.

The Dow opened 116.25 points in the red on Thursday, extending losses recorded in the previous session after the Federal Reserve said it will raise interest rates by a further 75 basis points.

Comments from the central bank remained in focus at the open after policymakers vowed to continue raising rates to as high as 4.6% in 2023 before pulling back as part of an effort to battle surging inflation. News that the Fed expects to raise its year-end rate to 4.4% in 2022 also left market participants fearful that the US economy may very well be rapidly approaching a recession.

Also drawing an amount of attention at the bell was the two-year Treasury yield, which inched as high as 4.131% after the Fed's move and approached highs not seen since before the GFC in October 2007. The yield on the benchmark 10-year Treasury note stood at 3.672% after hitting 3.64% overnight.

On the macro front, Americans filed first-time unemployment claims at an accelerated pace in the week ended 17 September, according to the Department of Labor. Initial jobless claims rose by 5,000 week-on-week to 213,000, below market expectations for a print of 218,000 but still a slight increase from the prior week's downwardly revised print.

Elsewhere, the Conference Board's leading index decreased by 0.3% in August to 116.2 points for a sixth consecutive drop and following its 0.5% fall in July.

FedEx, Carnival and Costco will all report earnings throughout the course of the day.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Salesforce.Com Inc. (CRM) $149.96 1.58%
Merck & Co. Inc. (MRK) $85.84 1.55%
Chevron Corp. (CVX) $156.91 1.23%
Johnson & Johnson (JNJ) $164.12 0.51%
Dow Chemical Co. (DOW) $45.16 0.40%
Microsoft Corp. (MSFT) $239.82 0.36%
International Business Machines Corporation (CDI) (IBM) $124.97 0.04%
Honeywell International Inc. (HON) $0.00 0.00%
Dowdupont Inc. (DWDP) $0.00 0.00%
Verizon Communications Inc. (VZ) $39.47 -0.01%