U.S. stock futures are down, with key indicators on track to extend losses after Wall Street’s bad sales since the outbreak began.
The futures for the Dow Jones Industrial Average fell 0.2%, its worst day since 2020, a day after the blue-chip index fell more than 1,000 points. The futures of the S&P 500 fell 0.3%. %
Shares have plummeted in recent days as investors try to gauge what impact the Federal Reserve’s plan to raise interest rates will have on the economy. Investors are caught between competing expectations: those rate hikes will be significant enough to curb rapidly rising inflation, but they will not be large enough to stifle economic growth.
“The market is trying to balance whether the central banks are more concerned about inflation or slowing growth, and the market has clearly decided that they are more concerned about inflation,” said Altaf Qassam, head of investment strategy in Europe, the Middle East and Africa. State Street Global Advisors. “If the Fed is going to fight inflation at all costs, it will definitely have an impact on stocks.”
Before the start,
It rose almost 7% after the food distribution company announced Quarterly revenue increase Late Thursday.
U.S. stocks rallied on Wednesday after the Federal Reserve raised interest rates Half a percentage pointIt was encouraged by the relief that it would not seriously consider further large increases in the future, but that relief faded on Thursday as investors re-evaluated the stock’s outlook.
Frank Benzimra, head of Société Générale’s Asian stock strategy, said that the ratings for US markets have become “richer than the rich” over the past 10 years because stock prices have risen more than earnings. But as interest rates rise, the value that investors place on companies’ future liquidity is declining, he said.
In bond markets, benchmark 10-year U.S. Treasury paper earnings rose to 3.074% on Thursday from 3.066%, the highest level since November 2018. Bond yields rise when prices fall.
One reason for the volatility in the markets is that investors do not have a clear refuge as securities and gold come under pressure as interest rates rise.
“You need a buffer to deal with this volatility, but a steady income is not a buffer before,” Mr. Qassam said.
Brent crude was up 2.2% at $ 113.35 a barrel on the global oil benchmark, extending recent gains driven by expectations that the EU would block Russia’s oil imports in response to its occupation of Ukraine. Gold prices rose 0.3%
Bitcoin was down 0.6% at $ 36,232, a fall of more than 8% on Thursday as market sales prompted investors to abandon risky challenges such as cryptocurrencies.
Investors have been waiting for data on the state of the job market, which is the strongest point in the U.S. economy at an unemployment rate of 50 years. It has raised wages to build up inflationary pressures. The April jobs report, ET at 8:30 a.m., is expected to show another strong month for job gains.
Overseas, benchmark indices fell in both Asia and Europe, while the US tracked losses, while the tech-savvy Hong Cheng Index fell 3.8%. On China’s mainland, the Shanghai Composite fell 2.2%. In Europe, the Pan-Continental Stoxx Europe 600 fell 1.2%.
The owner of International Consolidated Airlines Group fell more than 8% after reporting operating losses in the first quarter. Adidas fell more than 4% after being warned that its sales in China would decline.
Shares of Japan fell sharply as the Tokyo market reopened after a three-day holiday, with the Nikkei 225 up 0.7%.
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