Stock futures were little changed Wednesday night as investors absorbed a new, sobering reality for financial markets. Trading was 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%.

Stocks plunged Wednesday after the Federal Reserve struck a heavy blow to the roaring bull market, signaling that it was likely to only cut interest rates twice next year, down from the four reductions that had been penciled in during their last forecast in September. The central bank also trimmed its benchmark overnight borrowing rate a quarter percentage point Wednesday, to a target range of 4.25% to 4.5%, but the question now is what policymakers will do in 2025.

"Stretched positioning and sentiment left stocks vulnerable to a selloff," LPL Financial chief equity strategist Jeff Buchbinder said in reaction to Wednesday's slump. "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 offer investors much in the way of immediate comfort. "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, noting that cutting rates in recent months has allowed the central bank to "be more cautious as we consider more adjustments to our policy rate."

Leading up to Wednesday's rate move, Wall Street was betting on the Fed to stay more aggressive in lowering borrowing costs, which affects everything from what companies pay to raise capital to how much it costs consumers to buy a new house or car.

But with the revamped Fed outlook, the Dow Jones Industrial Average slid 1,123.03 points, or 2.58%, to 42,326.87 — falling for a 10th day, the longest decline since 1974, and putting 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 as 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, when the unwinding of the yen carry trade rocked markets.

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, signaling heightened investor uncertainty over the path of interest rates.

In after-hours trading, Micron Technology plunged roughly 13% after the chipmaker reported weaker-than-expected guidance for the second quarter.

Fed policy shift supports crypto sector long-term, says Galaxy's Chris Rhine

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, traditionally viewed as a hedge against inflation and monetary debasement," said Rhine, portfolio manager for the actively managed SPDR Galaxy ETFs.

"The broader driver for digital asset markets remains the increasing likelihood of greater adoption as an asset class, aided by regulatory progress and political support," he added. "Short-term sell-offs should be seen as buying opportunities, as many investors are waiting on the sidelines for a pullback."

Bitcoin was last lower by more than 5% at $100,953.25, according to Coin Metrics. The broader crypto market, as measured by the CoinDesk 20 index, lost more than 7%.

— Tanaya Macheel

Micron Technology, Lennar among stocks making moves after market close

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 for the second quarter. Still, the company posted in-line revenue results and beat quarterly earnings expectations, posting adjusted earnings per share of $1.79 on revenue of $8.71 billion, while analysts polled by LSEG forecasted earnings of $1.75 per share.
• Lamb Weston shares dipped 3.5% as the food processing company continues to be under pressure  from an activist investor to sell itself to Post Holdings.
• Shares of homebuilder Lennar sank 8.4%. The company reported a profit of $4.06 a share, while analysts surveyed by FactSet had called for earnings of $4.15 a share. Higher mortgage rates, from higher interest rates, in the most recent quarter impacted the company's performance.

— Pia Singh

Nvidia notches longest losing streak since September 2023

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 Wednesday.

Shares of Nvidia have jumped more than 160% since the start of 2024.

— Samantha Subin

Stock futures open little changed

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.

— Pia Singh