Stock futures trade lower, bond yields rise

Biggest surprise from today’s Fed minutes

Quill Intelligence CEO Danielle DiMartino Booth discusses when the Fed could raise rates on ‘Making Money.’

U.S. equity futures are continuing Wednesday's decline which was sparked after investors saw minutes from a Federal Reserve meeting as a sign the U.S. central bank might hike interest rates faster to cool inflation.

The major futures indexes suggest a decline of 0.2% when trading on Wall Street begins.

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Notes released Wednesday from last month's Fed meeting showed policymakers believe the U.S. job market is nearly healthy enough that ultra-low interest rates are no longer needed. Traders took that as a sign the Fed might be more aggressive about rolling back stimulus that is boosting stock prices.

FED EYES FASTER INTEREST RATE LIFTOFF, BALANCE SHEET REDUCTION AS INFLATION SOARS

On Wall Street, the S&P 500 ended the day down 1.9% to 4,700.58.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES36407.11-392.54-1.07%
SP500S&P 5004700.58-92.96-1.94%
I:COMPNASDAQ COMPOSITE INDEX15100.174159-522.54-3.34%

The Dow Jones Industrial Average fell 1.1% to 36,407.11, pulling back from the previous day's record. The Nasdaq composite tumbled 3.3% to 15,100.17 in its biggest one-day decline in 11 months.

The yield on the 10-year Treasury note, a benchmark for setting rates on mortgages and other loans, rose to 1.71% from 1.68%.

On the economic calendar, traders will be watching the latest weekly jobless claims. The estimate is for 195,000, slightly lower than the prior week's 198,000.

PRIVATE-SECTOR JOB GROWTH BLOWS PAST EXPECTATIONS IN DECEMBER, ADP SAYS

Other reports include the trade deficit, factory orders and the latest reading on the services sector.

In Europe, London's FTSE was down 0.9%, Germany's DAX lost 1% and France's CAC fell 1.3%.

In Asia, the Nikkei 225 in Tokyo tumbled 2.9%, the Hang Seng in Hong Kong gained 0.7% and China's Shanghai Composite Index slid 0.3%.

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In energy markets, benchmark U.S. crude lost 10 cents to $77.73 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 86 cents to $77.85 on Wednesday. Brent crude, the price basis for international oils, declined 21 cents to $80.58 per barrel in London. It rose 80 cents the previous session to $80.80.

The Associated Press contributed to this report.

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