By Peter Nurse
Investing.com -- U.S. stocks are seen marginally higher Thursday, bouncing after the previous session’s sharp losses, as investors digest another large interest rate hike by the Federal Reserve and the signaling of more to come.
The major equity averages closed lower Wednesday after the U.S. central bank lifted interest rates by another 75 basis points, as widely expected, but also included a set of projections that put rates on a path to rise above 4.5% next year, a more hawkish trajectory than previously anticipated.
Worries about the impact of aggressive interest rate hikes on the economy have hit stocks hard, with the benchmark S&P 500 less than 4% away from its mid-June low, its weakest point of the year.
“We project a mild recession in early-2024. The FOMC's move increases conviction, and the risk is for a potentially earlier recession," analysts at Societe Generale said.
On the economic front, data on weekly jobless claims are expected at 08:30 ET (12:30 GMT), while in the corporate sector, warehouse club Costco (NASDAQ: COST ) and restaurant operator Darden Restaurants (NYSE: DRI ) are scheduled to report quarterly earnings.
Oil prices edged higher Thursday, rebounding after falling to near two-week lows during the previous session as a combination of inventory stock builds, a tightening monetary policy, and a stronger dollar weighed.
U.S. crude inventories rose by 1.1 million barrels last week, according to data from the Energy Information Administration . Additionally, the hawkish stance of the Federal Reserve raised fears of a global recession while also lifting the dollar to a 20-year high, making crude more expensive for foreign buyers.
By 07:00 ET, U.S. crude futures traded 0.8% higher at $83.64 a barrel, while the Brent contract rose 0.8% to $90.52. Both contracts fell more than 1% on Wednesday, and are on track for the first quarterly loss in more than two years.
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