Stock futures down after Fed rate hike

[February 19, 2010]  (AP) -- The stock market is heading for a lower open after the Federal Reserve surprised investors by raising the interest rate it charges banks for emergency loans.

Markets around the world are also down Friday as investors fear that the Fed's move will raise borrowing costs and slow the economic recovery. It has been widely expected that the central bank would begin pulling back on its econonomic stimulus measures. But late Thursday's quarter-point increase in the discount rate came sooner than expected.

Dow Jones industrial average futures are down 57, or 0.6 percent, at 10,318. Standard & Poor's 500 index futures are down 8.20, or 0.7 percent, at 1,097.40, while Nasdaq 100 index futures are down 11.25, or 0.6 percent, at 1,809.50.

[Associated Press; By IEVA M. AUGSTUMS]

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.