Wall Street on course to continue its rotten run, with ISM manufacturing data in focus

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US stock futures fell on Friday as worries about the slowdown in economic growth continued to dampen investors’ risk appetite, potentially prolonging a rotten race that saw Wall Street record the worst first half of the year. a year since 1970.

Future data includes the Institute for Supply Management’s June survey.

How are stock index futures traded?
  • Futures S&P 500 ES00,
    it fell 0.2% to 3,782.50

  • Dow Jones Industrial Average YM00 Futures,
    fell 0.2% to 30,719

  • Nasdaq 100 NQ00 futures,
    fell 0.2% to 11,503.75

Indefinite DJIA,
fell 253.88 points, or 0.8%, to 30,775.43. The S&P 500 SPX,
lost 33.45 points, or 0.9%, to 3,785.38. The Nasdaq Composite COMP,
it fell 149.16 points, or 1.3%, to 11,028.74.

The CBOE VIX volatility index,
an indicator of the expected volatility of the stock market, closed the session on Thursday at 28.71, well above its long-term average around 20. On Friday, the VIX added another 2% to 29 , 28.

What drives the markets?

New half, same miserable mood. The S&P 500 has already lost 20.6% in 2022, crushed by fears that central bank moves to raise interest rates in response to persistent high inflation could cause a contraction in many developed economies.

And investors seemed a little less anxious to start the third quarter with the search for bargains before a long weekend on Wall Street. US markets will be closed on Monday for Independence Day.

U.S. data for Friday includes the ISM manufacturing index and the construction spending report, both at 10 a.m. East.

“The main reason for these widespread falls is the fact that the risks of recession have increased significantly during the second quarter,” Deutsche Bank said in a note to customers.

According to Richard Hunter, head of markets for Interactive Investor, central banks misjudged inflation and are playing catch-up, even if a sharp tightening policy could lead to an economic recession.

Reads: Inflation in the eurozone rose to an all-time high of 8.6% in June

“The upcoming quarterly reporting season will increase pressure on companies to reverse the declining sentiment. It will not be a bad feat, given the pressure on margins and uncertain outlooks, and as seen in the quarter above, profit errors will be severely punished, ”he said in a note to clients.

In that sense, the reaction to Micron Technology Inc.’s disappointing revenue orientation on Thursday afternoon. MU,
may offer some hope to equity touches. Shares of the memory chips group fell 3.4% in pre-market trading, after expectations of exceeding the company’s forecasts came with a poor outlook.

But as the shares of the memory chip group had already lost 40% in 2022, the low response to the latest forecasts may suggest that a lot of bad news already has a price on the market.

Opinion: The chip boom is probably over, as Micron says it’s in a “fall”

Payment prices SI00,
it fell below $ 20 an ounce for the first time in nearly two years due to concerns that demand from high-tech manufacturers is shrinking amid a wider economic slowdown. Silver fell last 3% to $ 19.73 an ounce. GC00 gold prices,
it fell 0.7% to $ 1,794.80 an ounce.

How are other assets traded?
  • Asian actions fought. Nikkei Index 225 NIK of Japan,
    closed 1.7%. Shanghai Composite Index of China SHCOMP,
    fell 0.3%. The data showed that manufacturing activity among Chinese small and medium-sized enterprises expanded in June at its fastest pace in 13 months.

  • European stock markets recovered early losses, leaving the Stoxx Europe 600 SXXP,
    + 0.06%
    0.1% more.

  • Bitcoin BTCUSD,
    + 3.61%
    was trading at $ 19,461, in a hectic session that has seen the range of cryptocurrencies fluctuate to $ 20,860.

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