Stock futures slipped Thursday morning as markets digested the latest interest rate hike from the Federal Reserve and further pressure on the regional banking sector ahead of a highly anticipated earnings release from Apple (AAPL).

Futures tied to the S&P 500 (^GSPC) fell 0.37%, while futures on the Dow Jones Industrial Average (^DJI) lost 107 points, or 0.32%. Futures on the technology-heavy Nasdaq Composite (^IXIC) were down 0.06%.

Shares of regional bank PacWest (PACW) tumbled more than 45% in pre-market trading as Bloomberg reported the company has been “weighing a range of strategic options.” Other regional banks followed PacWest lower, with Western Alliance (WAL) falling as much as 24% while Zions (ZION) slipped nearly 10%.

The moves downward began just hours after Federal Reserve Chair Jerome Powell said JPMorgan’s purchase of First Republic on Monday was “an important step toward drawing a line under that period of severe stress."

On Wednesday, Powell and the Fed raised interest rates to their highest levels since 2007, continuing an aggressive rate hike path that has contributed to the credit stress in the financial system. In his subsequent press conference, Powell's remarks indicated what some economists described as a “hawkish pause,” likely in June.

“Should regional bank stress stabilize, labor markets stay tight, and inflation stay elevated, a rate hike in June could become appropriate,” BofA U.S. Economist Michael Gapen wrote in a note Wednesday.

Shares of First Horizon (FHN) also slumped on Thursday, falling roughly 42% as Toronto Dominion Bank (TD) and First Horizon called off their merger due to regulatory hurdles. Shares of TD rose more than 2% on the news.

More corporate earnings are set to flow in on Thursday. Fifty-one S&P 500 companies, accounting for 12% of the index’s market cap, are scheduled to report earnings, per Evercore ISI.

Apple (AAPL), the world’s largest company, will headline Thursday’s releases when it reports after the closing bell.

Moderna (MRNA), Shell (SHEL) , Paramount (PARA) and Peloton (PTON) are expected to report before the market open while Apple, Shopify (SHOP), Block (SQ), Coinbase (COIN), DraftKings (DKNG), and Lyft (LYFT) are set to report after the market close.

Oil futures were near the flatline on Thursday after falling nearly 10% over the last five days. West Texas Intermediate (CL=F) and Brent (BZ=F) rose slightly in early trading. Brent Crude prices sat just under $73 a barrel.

On the economic front, initial jobless claims are expected Thursday, providing a final glance at the labor market before the April jobs report is released on Friday morning.

Josh is a reporter for Yahoo Finance.

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