Futures fall ahead of Fed announcement Reuters

© Reuters. On December 8, 2021, a trader works at the New York Stock Exchange (NYSE) in New York, USA. REUTERS / Brendan McDermid

Author: Shreyashi Sanyal

(Reuters)-US stock index futures retreated on Wednesday as the latest inflation data consolidated the Fed’s bet that it may announce an accelerated cut in monetary stimulus during the pandemic later in the day.

The market generally expects the Fed to hint at the meeting to end its bond purchases early and start raising interest rates early. The statement will be released at 2:00 pm Eastern Time (7:00 pm GMT), and Fed Chairman Jerome Powell will hold a press conference in half an hour.

Data on Tuesday showed that producer prices rose more than expected in the 12 months to November, the largest increase since 2010, and further increased the pressure on the Fed.

A Reuters survey of economists shows that interest rates will be raised from a near-zero level to 0.25-0.50% in the third quarter of next year, and then raised again in the fourth quarter.

After the major Wall Street stock indexes hit record closing highs on Friday, they started the week mildly as concerns about the new, rapidly spreading variant of the Omicron coronavirus made investors think twice.

The biggest decline in Wall Street futures, because the stocks of major technology companies, including Tesla (NASDAQ:) Inc, Microsoft Corporation (NASDAQ:), Netflix Inc (NASDAQ:), Apple (NASDAQ:), Meta Platforms and Amazon.com Inc (NASDAQ:) fell 0.2% in premarket trading To 1.2%.

Stocks of large banks, such as Citigroup Company (New York Stock Exchange:), Morgan Stanley (New York Stock Exchange:), JPMorgan Chase & Co. (New York Stock Exchange:), Bank of America (New York Stock Exchange ? and FuGuo bank (The New York Stock Exchange ? & Co rose 0.4% to 0.6%.

As of 6:42 am Eastern Time, they were up 12 points, or 0.03%, and down 3.75 points, or 0.08%, while e-mini was down 53.5 points, or 0.34%.

Albemarle (NYSE ? Corp and Livent (NYSE ? Corp) fell 4.5% and 6.6%, respectively, after Goldman Sachs (NYSE ?) downgraded the ratings of two lithium producers to “sell” to “neutral”.

On the economic front, after the US retail sales data increased by 1.7% in October, it is expected to increase by 0.8% in November. The report will be submitted at 8:30 am Eastern Time.

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