U.S. inventory futures on Tuesday pointed to a weak end to a robust month forward of a key Federal Reserve charge resolution and extra company earnings.
What’s occurring
-
Dow Jones Industrial Average futures
YM00,
-0.44%
fell 113 factors, or 0.3%, to 33672. -
S&P 500 futures
ES00,
-0.52%
dropped 17 factors, or 0.4%, to 4016. -
Nasdaq 100 futures
NQ00,
-0.71%
decreased 78.5 factors, or 0.7%, to 11890.
On Monday, the Dow Jones Industrial Average
DJIA,
fell 261 factors, or 0.77%, to 33717, the S&P 500
SPX,
declined 53 factors, or 1.3%, to 4018, and the Nasdaq Composite
COMP,
dropped 228 factors, or 1.96%, to 11394.
The S&P 500 has gained practically 5% this month.
What’s driving markets
The Federal Open Market Committee kicks off its two-day assembly on Tuesday, with close to common expectations for a quarter-point charge hike, with the uncertainty centered on the commentary to be delivered within the assertion and the press convention with Chair Jerome Powell.
“We doubt that the Fed will deliver a dovish surprise at its meeting, but the imminent end of interest rate hikes is nevertheless positive for risk appetite,” mentioned Willem Sels, world chief funding officer at HSBC Global Private Banking & Wealth. “That said, the main beneficiaries lie outside of the U,S,, in emerging markets, where borrowing costs are already declining as U.S. Treasury yields have peaked and the dollar is falling.”
The U.S. greenback index
DXY,
is down 11% from its late September peak. The yield on the 10-year Treasury
TMUBMUSD10Y,
has fallen practically 70 foundation factors from its late October peak of 4.23%.
The economics calendar contains the employment value index, an essential although lagging measure of wage strain.
The earnings docket contains General Motors
GM,
McDonald’s
MCD,
and Exxon Mobil
XOM,
Source web site: www.marketwatch.com
