The future of the stock is faltering as the post-Fed rally fades

As US stock futures and global indices plummeted, the post-Wall Street Fed rally was not set to last.

The futures for the S&P 500 fell 1.9% on Thursday. The broader index increased by 1.5% To stop the five-day series of defeats. Blue-chip Dow Jones Industrial Average futures lost 1.5%, while Nasdaq-100 futures fell 2.2%, leading to sharp losses in technology stocks after the opening hour.

Overseas, the Pan-Continental Stocks Europe 600 Index fell 1.9%, causing sharp losses for ratio-sensitive technology companies and economically sensitive retail stocks. In Asia, the indices were very mixed, with Japan’s Nikkei 225 up 0.4% and Hong Kong’s Hong Kong down 2.2%.

In pre-market trading, shares of technology companies fell





Each decreasing from 2% to 3%.


The shares were an exception, then rose 1% The Wall Street Journal reported That


Chief Executive

Elon Musk

He is expected to speak to its staff on Thursday, confirming his desire to buy the social media company.

Central Bank on Wednesday Raised its benchmark ratio to 0.75 percent, Its biggest rise in nearly three decades, is betting on curbing widespread inflation. As investors welcomed the move to ease inflation, the much-anticipated move sparked a rally on Wall Street, which shattered on Thursday as investors thought of the risk to the economy following years of low prices and moderate consumer price rises.

Federal Reserve Chairman Jerome Powell said the central bank’s goal was to reduce inflation to 2%. The central bank on Wednesday approved a 0.75-percent rate hike, the largest interest rate increase since 1994. Photo: Elizabeth Friends / Reuters

“I think this is the realization that we are really heading for a recession. Until now I do not seem to have really filtered the market mind,” said Altaf Qassam, head of investment strategy for Europe, the Middle East and Africa at State Street Global Advisors.

Federal Reserve Chairman Jerome Powell suggested on Wednesday that an “unusually large” rate hike would not be common, but that he would open the door for another 0.75-percent increase soon next month.

Iofin David, Monetta’s chief investment officer, said that if they felt the federal race was betting much faster than inflation, that amount of interest rate hike would calm investors. “This will lead to even more tension in the market,” he said.

Losses accelerated after the Swiss central bank surprised investors by raising interest rates for the first time in 15 years. The Swiss National Bank raised its policy rate by 0.5 percentage points to a negative 0.25%.

Bank of Japan

In a large developed economy the central banks did not raise rates to control inflation. Economists expected the SNB rates to remain unchanged.

Seema Shah, chief strategist for leading global investors, said: “This is the last hurdle for the downturn.”

Following the move, the Swiss franc rose 2% against the dollar and 2.4% against the euro. The WSJ dollar index rose 0.1% against the dollar against its peers.

Bank of England on Thursday Raised its core interest rate 1% to 1.25% is expected, indicating its fifth move in several meetings, and said bigger moves may be needed to curb inflation. Following this decision, the British pound rose 0.3% against the dollar.

Yields on the benchmark 10-year US Treasurys rose to 3.473% on Wednesday from 3.389%, pushing yields to a record high for more than a decade. Treasury yields move in the opposite direction to prices, helping to set rates on a variety of consumer goods, including mortgages and auto loans.

According to CoinDesk, Bitcoin fell 3% to $ 21,029.90 from its 5 pm ET level on Wednesday. 10th day following. Cryptocurrencies are plagued by broader economic concerns, affecting risky trades and concerns about select schemes and Companies in the crypto ecosystem.

In commodity markets, Brent crude was down 1.4% at $ 116.90 a barrel, the international benchmark. Gold prices rose 0.2 percent.

Weekly unemployment claim data show that at 8:30 a.m. ET, 229,000 Americans applied for unemployment benefits for the week ending June 11. The jobs market is a strong part of the economy, but federal officials have identified weaker employment figures. May be the necessary result The central bank’s attempt to control inflation.

Shares advanced on Wall Street on Wednesday after the Federal Reserve closed its interest rate.


Justin Lane / Shutterstock

Write to Will Horner at [email protected]

Copyright © 2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

Leave a Reply

Your email address will not be published.