U.S. stock futures tilt south ahead of Fed minutes


US stock index futures pointed to a softer start for Wall Street, as investors expected more clues about interest rate policy when the minutes of the Federal Market Committee meeting are released. Open from early May later in the session.

How are stock futures traded?
  • Futures S&P 500 ES00,
    -0.13%
    they fell 0.2% to 3,933

  • Dow Jones Industrial Average YM00 Futures,
    -0.20%
    it fell 0.2% to 31,799

  • Nasdaq-100 NQ00 futures,
    -0.06%
    it was down 0.1% to 11,755

On Tuesday, the Dow Industrials DJIA,
+ 0.15%
it rose 0.2% to 31,928.62, its third consecutive gain. The S&P 500 SPX,
-0.81%
fell 0.8% to 3,941.48, with gains for two days in a row, while the Nasdaq Composite COMP,
-2.35%
it fell 2.4% to 11,264.45, its lowest close since November 3, 2020.

What is driving the markets?

Tuesday’s withdrawal came after a serious warning from Snapchat’s father, Snap Inc. SNAP,
-43.08%
this weighed on technology stocks, while weak home sales also boosted depressed sentiment among investors.

Markets may turn on track for future monetary policy decisions, when the Fed’s minutes of the last monetary policy meeting are released at 2 p.m. Eastern time.

Reads: The S&P 500 is close to the bear market. Its ferocity may depend on the economy.

“While the search for any mention of a possible 75 bp rate hike may be futile, the base case remains in a series of 50 bp rate hikes to follow,” a team of strategists said. Saxo Bank. “But investors are also increasingly looking at Fed talks for signs of economic stagnation or a slowdown, and that’s really driving market sentiment right now.”

Fed Chairman Jerome Powell has set plans for the central bank to raise the benchmark interest rate by half a percentage point at the next two FOMC meetings in June and July, to close to 2% in in August.

Reads: Fed’s Bostic calls for caution as Fed raises rates: “Even fire trucks with sounding sirens slow down at intersections”

April durable goods orders and core capital order data expire at 8:30 a.m. Eastern time.

Proceeds focused on Wednesday will be chip maker Nvidia Corp. NVDA,
-4.40%
and the cloud computing-based data storage group Snowflake Inc. SNOW,
-6.64%.
“The concern around Nvidia is to what extent the fall in cryptocurrencies is starting to weigh on sales due to a slowdown in cryptocurrency mining,” Saxo strategists said.

“Snowflake was one of the most popular IPOs in recent memory that attracted even Berkshire Hathaway as one of its investors and the growth of the main line has been strong, but the market is getting more and more nervous because growth is slowing faster than initially expected, “they added.

Reads: This is what the head of the United States of KPMG says about the collapse of the market, the economy and mergers and acquisitions.

The shares of Wendy’s Co. WEN,
-2.34%
rose 10% in the pre-market after Nelson Peltz hedge fund Trian unveiled plans for a possible sale of the burger chain.

CL00 oil prices,
+ 1.33%
were higher, and the DXY dollar,
+ 0.46%
also won, with GC00 gold,
-0.80%
moving in the other direction. Yields on TMUBMUSD10Y bonds,
2.742%
they were mostly flat.



Source link

Leave a Reply