Stock futures fall slightly after big Fed rally, Meta shares decline

cnbc.com:

Stock futures moved slightly lower in overnight trading after markets staged a major rally on Wednesday following another 0.75 percentage point hike from the Federal Reserve.

Futures tied to the Dow Jones Industrial Average slipped 27 points, or 0.08%. S&P 500 futures lost 0.12% and Nasdaq 100 futures dropped 0.35%.

Shares of Meta Platforms dipped 3% in extended trading on the back of disappointing quarterly results while Ford gained more than 5% after a beat on the top and bottom lines, and as it raised its dividend. Teladoc's stock cratered more than 22% after taking another large goodwill charge.

Following the rate hike from the Fed, DoubleLine Capital's CEO Jeffrey Gundlach told CNBC's "Closing Bell Overtime" he believes the central bank is no longer behind the curve on inflation and Powell has regained credibility.

«This market reaction seems less of a sugar high than the prior two in June and May,» Gundlach said.

The after-hours moves came after markets saw a broad-based rally during regular trading on Wednesday as the central bank hiked rates by another 75 basis points and investors continued to bet on whether the Fed can halt surging prices without pushing the economy into a recession.

All S&P 500 sectors ended the day higher, with communications services posting its best daily performance since April 2020.

During Wednesday's regular trading session, the Dow gained 436.05 points, or 1.4%, the S&P 500 added 2.62% and the Nasdaq Composite closed 4.06% higher, boosted by shares of Alphabet and Microsoft.

«For the most part, what's really driving this move is that the economy is still performing okay and it looks like the Fed is probably going to slow the pace of tightening down by the next policy meeting,» said Ed