After plunging on Friday, stock futures edged off further, as investors braced for the Federal Reserve to announce a third interest rate hike next week. The Fed is expected to hike rates by a quarter point in its meeting, a move that could send the economy into a new recession.
The day started off on a high note for the bulls as the Dow Jones Industrials gained 0.4 percent in early morning trading. Today is a pivotal day for volatility as if the Dow closes lower than the previous week it will mark the 20th week in a row where stocks have declined.
The U.S. stock market fell sharply on Tuesday as investors digested the news that Microsoft was not buying LinkedIn.
U.S. stock futures fell Monday, suggesting markets may open lower after last week’s record high. The S&P 500 futures fell 0.2 percent. The index rose to its second-highest level Friday after the monthly jobs report showed that the labor market continued to recover slowly in May. Nasdaq-100 futures fell nearly 0.4% on Monday, indicating a sharper decline in major technology stocks. The major indices have seen a rather subdued run in recent days as investors weigh a number of factors, including the economic outlook, supply chain concerns and high equity valuations. Although inflation expectations have eased in recent days, investors are still waiting for signs that the Federal Reserve may be considering withdrawing the easy money policy that has supported rising stocks. The impression is that the market will remain quiet until we get clearer data on inflation and the growth outlook, he said. Sima Shah, Head of Strategy at Principal Global Advisors. There is no serious engine on the market that can push it significantly higher. Over the weekend, the Chancellor of the Exchequer Janet Yellen told Bloomberg News that President Biden’s spending plan would be good for the U.S. even if it drives up inflation and raises interest rates. The market is so focused on [inflation] that anything that can give an indication of the intensity of inflationary pressures is in the spotlight, Shah said. The fact that Janet Yellen is talking about interest rate hikes is not shocking, but I think the market is extremely nervous. The prospect of higher inflation, which could reduce the value of fixed-income benefits, and rising interest rates have led some investors to sell government bonds and buy assets linked to the overall economic recovery. The yield on the 10-year Treasury Note rose from 1.559% to 1.577% on Friday. Returns increase when prices fall. Asset managers are also looking at whether volatility in so-called meme stocks will continue this week. In case of pre-market trading in shares Investments in AMC Entertainment increased by 6%. GameStop were up 2% Monday morning, and BlackBerry by 6%. Outside Germany, the pan-continental Stoxx Europe 600 index remained relatively stable. In Asia, the major benchmark indices ended the session with mixed feelings. The Shanghai Composite Index rose 0.2 percent. Japan’s Nikkei 225 Index rose 0.3%, while Hong Kong’s Hang Seng Index fell nearly 0.5%.
traders worked Thursday at the New York Stock Exchange.
Photo: Nicole Pereira/Associated Press Email Caitlin Ostroff at [email protected] Copyright ©2020 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8The Russell 1000 Index continued its slide into negative territory Tuesday morning (March 6th) after a slew of economic data pointed to a sharper than expected economic contraction in the U.S. economy.. Read more about u.s. stock market news and let us know what you think.
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