Wall Street indices futures are moving negatively on Monday, in the wake of last Wednesday’s rise in US interest rates by 0.50% in the range 0.75% – 1% and after a week with strong fluctuations in the US stock market .
Particularly, the futures of the Dow Jones lose 544 points or 1.66% to 32,266 points while the futures of the S&P 500 fall by 86.25 points or 2.08% to 4,034 points. Alongside, Nasdaq futures slide by 337 points or 2.66% to 12,359.50 points.
Meanwhile, the yield on the 10-year bond reached today the highest level since the end of 2018, “reaching” 3.185%.
Rising interest rates have put pressure on major technology companies, such as Meta Platforms and Alphabet. In particular, the share of Meta falls by 2.55 in pre-conference trading and Alphabet loses 2.7%. At the same time, shares of Amazon, Apple and Netflix are falling more than 2%.
It is noted that Wall Street is coming from a week with strong fluctuations, as investors were assessing the prospects of raising interest rates in the face of possible slower economic growth.
Last week, the Nasdaq lost 1.54%, while the S&P 500 and Dow fell 0.21% and 0.24%, respectively. It was the sixth consecutive week of losses for the Dow and the fifth consecutive for the other two indices.
Although the movements throughout the week were not unusual, some of the daily fluctuations were very intense. Typically, the Dow recorded its best day since 2020 on Wednesday, but then erased all those gains and even more on Thursday.
Wednesday’s short-term rally came after US Federal Reserve Chairman Jerome Powell said the central bank was not considering raising interest rates by 75 basis points in the coming sessions. Shares and bonds rallied after the announcement, but reversed their course on Thursday.
Billionaire hedge fund manager David Tepper told CNBC that Powell’s statement had contributed to strong market volatility.
In business news, Ford is seeking to sell 8 million shares of Rivian Automotive over the weekend, according to CNBC sources.
Investors are also watching the developments in the war in Ukraine. US First Lady Jill Biden paid a surprise visit to Ukraine on Sunday. The United States and the G7 have announced that they will increase financial support to Ukraine.
Source: Capital
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