After the Federal Reserve’s largest rate hike since 1994 and tightening measures by other major central banks raised fears of a recession, U.S. stock index futures rebounded on Friday following a violent Wall Street selloff this week.
The benchmark S&P 500 and the tech-heavy Nasdaq have both plunged 6% so far this week, with the former shedding nearly $2 trillion in this week’s selloff alone.
The Fed on Wednesday raised its key rate by 75 basis points to tame decades-high inflation, and officials outlined a faster pace of rate hikes.
The Bank of England and the Swiss National Bank also raised borrowing costs, adding to worries of a global economic downturn.
The Dow is also on the cusp of confirming its own bear market.