Devik Jain and Susan Mathew

(Reuters] – U.S. stocks index futures declined on Thursday after Russia tempered optimism about talks with Ukraine. The Federal Reserve’s interest rate increase fueled a Wall Street rally a single day before.

The global stock market surged this week because of signs that Russia had made progress in ending “a special military operations”, but on Thursday, the Kremlin declared there wasn’t a deal.

After the U.S. central banking raised interest rates by 25 base points, as anticipated and foreseeing equivalent rises at all of its meetings this year, Wednesday’s close was above 2%.

Philip Marey (Senior U.S. Strategist at Rabobank) stated that there are many things in the Fed statement that should have stopped this relief in stock market, and that it is overdone.

“The most important thing right now is the talks between the Ukrainians, and the Russians. We will see if the optimism surrounding any peace deal is overdone.

Shares of big banks slipped in premarket trading, with JPMorgan Chase & Co (NYSE:), Bank of America (NYSE:) and Citigroup (NYSE:) Each falling nearly 1% In the aftermath of Fed’s economic growth projections being cut, the U.S. Treasury yield curve fell to near 2-year lows. [US/]

Tesla Inc (NASDAQ.) Inc suffered 0.7% losses to be the leader among megacap growth stock. According to the electric vehicle manufacturer, it is doing all it can to maintain production at Shanghai’s factory while cooperating with China’s COVID-19 preventive measures.

As oil prices rose by 4% amid concerns of shortages caused by the Russian shutdown of oil supply, energy shares rose. [O/R]

Occidental Petroleum, NYSE:), led gains of 3.1%. The S&P 500 energy sector – which has gained 27.8% so far in 2022 on soaring crude prices – logged its fourth straight day of declines in the previous session.

7.15 am ET ET were down 54 points or 0.16%, 8 points or 0.18% and 34.25 points or 0.25%.

After closing at the lowest point since February 18, 2018, Wall Street’s fear index (CBOE volatility Index) rose.