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US STOCKS-Futures shed gains to trade lower on Fed disappointment

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* Futures down: Dow 0.24 pct, S&P 0.28 pct, Nasdaq 0.35 pct

* Dow, S&P end 1.5 pct lower Wednesday on Fed disappointment

* Accenture down on disappointing full-year outlook (Changes comment, adds details, updates prices)

By Medha Singh

Dec 20 (Reuters) - U.S. stock futures gave up slim earlygains to trade lower on Thursday, a day after the FederalReserve's forecast of fewer interest rate increases in 2019 fellshort of investors' hopes of a more dovish monetary policy.

The Fed raised interest rates on Wednesday and projected twohikes next year, instead of three, but what spooked the marketswas Fed Chairman Jerome Powell saying the central bank wouldkeep its balance sheet reduction on autopilot.

The specter of rising borrowing costs only added to concernsof slowing corporate profit growth next year amid slackeningeconomic growth, with increasing fears of a recession in thebackdrop of the China-U.S. trade war and a host of othergeopolitical concerns.

U.S. stocks swooned to close about 1.5 percent lower. TheDow Industrials Average .DJI closed at its lowest sinceNovember last year and the Dow Transports .DJT closed nearly21 percent below its record high, confirming bear territory.

"I believe the reaction after the Fed meeting was a bitoverdone. The immediate reaction to a surprise is alwaysnegative and sell buttons always get hit very quickly," saidRandy Frederick, vice president of trading and derivatives forCharles Schwab in Austin.

The S&P 500 .SPX ended 14.5 percent lower than its recordclosing high on Sept. 20, with 298 components now down 20percent or more from their 52-week highs.

At 9:05 a.m. ET, Dow e-minis 1YMc1 were down 0.24 percent.S&P 500 e-minis ESc1 fell 0.28 percent and Nasdaq 100 e-minis NQc1 were down 0.35 percent.

Shares of Walgreens Boots Alliance IncWBA.O were down 2.2percent as the drugstore chain launched a cost-cutting planafter beating estimates.

Conagra Brands IncCAG.N dropped 3.7 percent after thepackaged foods maker's sales missed estimates on delayedshipments and weak demand.

Accenture PlcACN.N fell 2.2 percent as its full-yearrevenue and profit outlook largely fell below estimates.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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