Today’s Stock Market News: Stock Futures Decline as Fed Rate Hopes Dwindle
Dow Jones Industrial Average (^ DJI) and Standard & Poor’s 500 (^ GSBC) futures are down about 0.3 %, on the verge of losing control of a Noticeable extension of gains. High-Tech Nasdaq 100 Futures (^NDX) decreased more than 0.2%
Signs of weakness in the US economy suggest that the Fed may ease its tightening campaign. But investors reevaluated those hopes after Minneapolis Federal Reserve Bank President Neel Kashkari said on Monday that the central bank… He probably has more work to do in the future Including to control inflation.
“There was a lot of euphoria at the end of last week because of the belief that the Fed was done, that the jobs market was slowing, and that the US economy was going to have a soft landing,” said Michael Hewson, chief market analyst at the Fed. CMC Markets UK told Reuters. “People are starting to become a little clearer. There’s a risk that the Fed might go higher again.”
Investors will hear hints about policymakers’ thinking when the Fed chairs speak in Kansas City and Dallas on Tuesday, and then when Chairman Jerome Powell takes office later in the week.
New Fed skepticism cast a pall over the oil outlook, helping to push WTI prices Less than $80 per barrel For the first time in more than two months, despite the possibility of a reduction in Saudi and Russian supplies. West Texas Intermediate crude futures (each = q) and Brent crude futures (BZ = FBoth fell approximately 2% to $79.30 and $83.52 per barrel, respectively.
Oil was also affected by trade data that showed a decline in China Exports unexpectedly accelerated In October, in a sign of weak external demand, while its imports rose. But there was a bright spot for the world’s second-largest economy, such as the International Monetary Fund It raised its forecast for GDP growth For the country this year and next.
Stock futures lose ground as Fed rate hopes dwindle
The rally in US stocks was about to run out of steam on Tuesday, as confidence that the Federal Reserve would hold off on raising interest rates began to seep through.
Futures contracts on the Dow Jones Industrial Average (^ DJI(decreased 0.28%, or 94 points, while the S&P 500 fell)^ GSBC) Futures fell 0.25%. Contracts on the highly technical Nasdaq 100 index (^NDX) decreased by 0.11%.