A lack of direction in US stock futures put Wall Street on track for its third straight day of losses, as investors worry that rising inflation could harm the world’s largest economy and devastate corporate earnings. Wall Street.
How do stock-index futures contracts work?
As of 3:826.5, the S&P 500 index futures were unchanged.
By 12 percent, the Dow Jones Industrial Average YM00 futures were up to 30,993 points, or 0.3 percent, on the futures market
Futures for the Nasdaq-100 index remained almost unchanged at -11,673.
When the Dow Jones Industrial Average ended Tuesday’s session at 30,946.90, it dropped by 491.27 points (1.6 percent). At 3,821.55, the S&P 500 SPX, -2.01 percent was down 2%. NASDAQ COMP, -2.98 percent fell by 3% to 11,181.50 points.
According to Dow Jones Market Data, all three saw their biggest daily percentage drops since June 16.
What’s influencing the economy?
The first-quarter GDP in the United States was updated to indicate a reduction of 1.6 percent, compared to the previous 1.5 percent drop.
Investors are also anticipating remarks from European Central Bank President Christine Lagarde, Federal Reserve Chair Jerome Powell, Bank of England Governor Andrew Bailey, and Bank for International Settlements head Augustin Carstens at 9 a.m. ET ECB conference.
A dismal first half of the year is finally coming to an end for stocks, which are stumbling. With inflation rates reaching multi-decade highs undermining family confidence and the Federal Reserve’s reaction to rising prices potentially tipping the economy into recession, the S&P 500 is down 19.6% so far in 2022.
A Conference Board study released Tuesday found that consumer confidence fell to its lowest level in a decade in June. The Nasdaq Composite has already lost 28% of its value over the year, with a further 3% in losses expected this year.
In the last week, the equity markets in the United States have risen due to the obscure reasoning that a recession in the United States would entail lower final Fed funds rates and, thus, be positive for equities… OANDA senior market analyst Jeffrey Halley cited dismal Michigan Consumer Sentiment data in a message to clients in support of this theory.
Even lower US Conference Board Consumer Confidence statistics triggered the opposite response, with US markets plunging,” he said.
Asian and European stock markets were left reeling after Wall Street’s dramatic fall. Two percent declined in Hong Kong’s Hang Seng Index (HSI) (-1,88%) and one percent fell in Japan’s Nikkei 225 Index (NIK), (-0.91%) After President Xi Jinping underlined that the regime’s stringent COVID-19 policy was “right and successful,” the Shanghai Composite SHCOMP, -1.40 percent dropped by 1.4%.
They fueled concerns that China’s supply limits might increase global inflationary pressures. Prices in Spain rose by 10.2 percent last month, the quickest rate in 37 years, demonstrating the validity of such fears on Wednesday. A 0.8 percent drop in Europe’s Stoxx 600 index was reported.
WTI crude CL.1, up 1.6%, up 1.5% to $113.41 a barrel as oil prices pushed higher.
Yields on the TMUBMUSD10Y TMUBMUSD10Y, 3.169 percent, were down by 1.3 basis points.
Focused companies
To celebrate Ben Silbermann’s departure as CEO, Pinterest Inc. PINS, -4.97 percent shares rose 4.6% in premarket trade on Tuesday, after learning that Google’s e-commerce leader will succeed Silbermann.
As a consequence of dismal fiscal first-quarter earnings and the resignation of CEO Mark Tritton, shares of Bed Bath & Beyond Inc. BBBY, -3.26 percent dropped 13% in premarket trade on Wednesday.
However, shares of General Mills (GIS) fell 1.1% despite the company’s quarterly results exceeding forecasts. Fourth-quarter net income was $822.8 million, or $1.35 per share; this figure is about twice what it was the previous year’s $416.8 million. Shareholders received an adjusted EPS of $1.12, above the FactSet forecast of $1.01.
Other resources
A 0.01 percent drop in the ICE U.S. Dollar Index DXY, 0.00% was the only change in the index.
BTCUSD, -1.21 percent dropped 4.6% to $20,120 in trading today.
On August gold futures GCQ22, the price of an ounce was $1,827.90 after the trade, down by 0.63 percent.
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