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Stock futures faced a relatively stable night on Wednesday as investors grappled with the implications of the Federal Reserve's revised outlook. The regular session had witnessed significant volatility due to concerns about interest rates.

Navigating the Turbulence in Financial Markets

Impact of Fed's Revised Outlook on Stock Futures

Stock futures showed little change as investors digested the new reality. Trading became volatile after the regular session's panic surrounding the Federal Reserve's revised outlook for interest rates next year. Futures tied to the Dow Jones Industrial Average were 26 points, or less than 0.1%, higher. S&P futures traded just above flat, while Nasdaq 100 futures shed 0.1%. This indicates the cautious stance of investors in the face of changing monetary policy.The plunge in stocks on Wednesday was a result of the Federal Reserve's heavy blow to the roaring bull market. The central bank signaled that it was likely to only cut interest rates twice next year, down from the four reductions expected in September. This shift in policy expectations had a significant impact on market sentiment."Lifted positioning and sentiment left stocks vulnerable to a selloff," said LPL Financial chief equity strategist Jeff Buchbinder. "The big jump in inflation expectations and related bond selloff was a convenient excuse. Once support from tech evaporated, no other groups were able to step in to fill that gaping hole."Chair Jerome Powell didn't provide immediate comfort to investors. "We're at 4.3% — that's meaningfully restrictive and I think it's a well-calibrated rate for us to continue to make progress on inflation while keeping a strong labor market," Powell said at a press conference following the Fed meeting.

Wall Street's Bet and the Dow's Decline

Before Wednesday's rate move, Wall Street was betting on the Fed to be more aggressive in lowering borrowing costs. However, with the revised Fed outlook, the Dow Jones Industrial Average slid 1,123.03 points, or 2.58%, to 42,326.87. This was the longest decline since 1974 and put the index on track for its worst weekly performance since March 2023.The S&P 500 tumbled 2.95% to 5,872.16 and the Nasdaq Composite lost 3.56% to 19,392.69. The tech-heavy index saw losses pick up towards the end of the session. The 30-stock Dow and S&P 500 both logged their biggest one-day loss since August.Treasury yields jumped following the Fed's cautious outlook, further pressuring shares. The 10-year Treasury yield rose more than 13 basis points to cross 4.50%.The Cboe Volatility Index, known as Wall Street's "fear gauge," also soared, indicating heightened investor uncertainty over the path of interest rates.

After-Hours Trading and Micron's Performance

In after-hours trading, Micron Technology plunged roughly 13% after the chipmaker reported weaker-than-expected guidance for the second quarter. Despite posting in-line revenue results and beating quarterly earnings expectations, the company's guidance disappointed investors.

Fed Policy Shift and Crypto Sector

The Fed's expectations of inflationary pressures from the incoming Trump administration's policies could benefit crypto prices in the long term, according to Galaxy's Chris Rhine. "While cryptocurrencies are experiencing a short-term sell-off alongside equities, this shift ultimately supports the cryptocurrency sector," said Rhine.Bitcoin was last lower by more than 5% at $100,953.25, and the broader crypto market, as measured by the CoinDesk 20 index, lost more than 7%.

Other Stocks in After-Hours Trading

Here are some of the stocks that made moves in after-hours trading on Thursday.Micron Technology shares plunged 15% after the chipmaker posted disappointing guidance. Lamb Weston shares dipped 3.5% as the food processing company faces pressure from an activist investor. Shares of homebuilder Lennar sank 8.4% as higher mortgage rates impacted the company's performance.

Nvidia's Losing Streak

Nvidia fell 1% on Wednesday and fell for a fifth straight day for the first time since September 2023. The moves added to Nvidia's roughly 4% week-to-date loss and nearly 7% drop since the start of December. The market bellwether had been up by more than 4% earlier in the session. Shares of Nvidia have jumped more than 160% since the start of 2024.

Stock Futures Open and Market Stability

Stock futures were little changed on Wednesday night after the market plunge from the earlier session. Futures tied to the Dow Jones Industrial Average opened roughly 60 points higher, or 0.14%. S&P 500 futures were just above flat, while Nasdaq 100 futures opened 0.1% lower shortly after 6 p.m. ET.