U.S. inventory futures fell again Thursday as worries about additional Fed tightening dampened sentiment.
How are stock-index futures
-
S&P 500 futures
ES00,
-0.18%
dipped 14 factors, or 0.4%, to 3979 -
Dow Jones Industrial Average futures
YM00,
+0.02%
fell 75 factors, or 0.2%, to 32738 -
Nasdaq 100 futures
NQ00,
-0.50%
eased 81 factors, or 0.7%, to 12147
On Wednesday, the Dow Jones Industrial Average
DJIA,
fell 58 factors, or 0.18%, to 32798, the S&P 500
SPX,
elevated 6 factors, or 0.14%, to 3992, and the Nasdaq Composite
COMP,
gained 46 factors, or 0.4%, to 11576.
What’s driving markets
Concerns that increased rates of interest to fight inflation will trigger an financial contraction continued to damp threat urge for food.
“This morning the low energy in U.S. equity futures continues and it feels like the equity market is back at the wait-and-see mode on inflation and the economy. As we have said before, it is the bond market that will dictate where equities go from here,” stated Peter Ganry, head of fairness technique at Saxo Bank.
“If S&P 500 futures slips below Tuesday’s close, then the 3,950 level is the next level to watch and the approximate area for the 200-day moving average,” Ganry added.
Two-year Treasury yields
TMUBMUSD02Y,
remained close to 15-year highs after Federal Reserve Chair Jerome Powell in latest periods delivered feedback to Congress usually deemed extra hawkish than anticipated.
“While Powell softened things a little [on Wednesday] by saying nothing is decided yet, the clear message is future rate decisions will be dependent on the data and for now that seems to be tilting things more towards a 50-basis point rather than 25 basis point rate rise later this month,” stated Russ Mould, funding director at AJ Bell.
“This would shatter the market’s comfortable illusion at the start of the year that rates were about to pivot and a soft landing for the U.S. economy could be engineered,” Mould added.
Powell and his colleagues have made it clear that inflation nonetheless working at greater than thrice the Fed’s 2% goal is unlikely to be sufficiently suppressed if the U.S. labor market stays sturdy.
The JOLTS survey of job openings revealed on Wednesday suggests there stay two positions out there for each one individual registered as unemployed. With this in thoughts, merchants can be keenly eyeing the official nonfarm payrolls report on Friday for proof of whether or not such a strong jobs market is including to wage inflation.
U.S. financial updates set for launch on Thursday embody the weekly jobless claims report at 8:30 a.m. Fed Vice Chair for Supervision Michael Barr is due to talk about crypto, only a day after Silvergate Capital
SI,
stated it will voluntarily liquidate its financial institution.
Source web site: www.marketwatch.com
