The latest data highlights the shrinking US economy in the first quarter in a record trade deficit. — AFP pic
Wednesday, June 29, 2022 9:24 pm MYT
Washington, June 29-The U.S. Stock index futures struggled with today’s direction.
The latest data highlight the contraction of the U.S. economy in the first quarter in a record trade deficit, with U.S. consumer confidence hitting a 16-month low following Tuesday’s report. Shown.
Market participants worried about the impact of a significant rate hike on the US economy focused on a speech by Fed Chairman Jerome Powell at the European Central Bank forum. His comments are analyzed for changes in the Fed’s hawkish attitude towards tackling inflation.
Investors also summarized a report by Federal Reserve Bank of Cleveland Governor Loretta Mester advocating an additional 75 basis point (bps) rate hike at the July meeting of the US Central Bank if economic conditions remain unchanged.
San Francisco Fed President Mary Daily and New York Fed President John Williams yesterday opposed even more rapid rate hikes and fears that a significant rise in borrowing costs could lead to a sharp recession.
“They haven’t trampled on it, it’s for sure. Now when you have this kind of negative confluence, everything gets together at once, keeps on the sidelines and steps up. “I don’t want to be a buyer, says Robert Public, Senior Portfolio Manager at Dakota Wealth Management.
The benchmark S & P 500 has been on track for the largest decline in the first half since 1970, with the Dow and Nasdaq falling for the first time since 2015, two consecutive quarterly declines.
At 8:48 am on the ET, the Dow e-minis rose 42 points (0.14%), the S & P 500 e-minis remained unchanged, and the Nasdaq 100 e-minis fell 15.5 points (0.13%).
Traders pointed out that portfolio rebalancing at the end of the quarter also leads to higher volatility.
Tesla’s stock led the decline in growth stocks such as Apple Inc, Netflix Inc and Amazon.com Inc. These fell between 0.1% and 1% in pre-market transactions.
General Mills Inc rose 2.9% after Cheerios maker sales were higher than expected, despite higher prices.
Pinterest Inc made a profit of 4.1% after the social media platform said Bill Ready, a former Alphabet Inc executive, would replace long-time CEO who resigned.
Bed Bath & Beyond Inc fell 12.7% after household goods retailers reported a similar quarterly decline in sales and said their CEO Mark Tritton had resigned — Reuters.
https://www.malaymail.com/news/world/2022/06/29/wall-street-set-for-subdued-open-as-fed-hawks-push-for-faster-rate-hikes/14918 Wall Street was set to a calm open as the Federal Reserve promoted faster rate hikes.