Stock Market News

Futures falter as Fed forecasts further rate hikes

2023.06.15 08:13


© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 16, 2023. REUTERS/Brendan McDermid

(Reuters) -U.S. stock index futures fell on Thursday as the Federal Reserve signaled that borrowing costs could increase further this year after it skipped raising them in its latest meeting.

The Fed left rates unchanged at the 5%-5.25% range on Wednesday, but indicated they could rise by at least half a percentage point this year as inflation remains stubbornly persistent and the U.S. economy stays resilient.

Traders see a 72% chance of a 25-basis-point rate hike in July, up from around 60% a day earlier, according to the CME Fedwatch tool.

“Powell expressed that the committee seemed surprised about the resilience of current inflation even if Tuesday’s CPI print showed a continued slowing in the headline inflation rate,” said Charles Hepworth, investment director at GAM Investments.

“Admitting to being surprised that the Fed’s policy to date hasn’t cooled a hot jobs market is basically signaling higher rates are indeed even more necessary and can be withstood by the economy as it glides (to) a soft landing.”

The and Nasdaq rose for a fifth consecutive session on Wednesday, while the Dow ended down following the Fed decision.

Market heavyweights Apple (NASDAQ:), Nvidia (NASDAQ:) and Amazon.com (NASDAQ:) fell between 0.4% and 1.5% in premarket trading as government bond yields continued to rise. [US/]

Shares of Tesla (NASDAQ:) dipped 3.1%. The stock snapped a record 13-day streak of gains in the previous session.

At 7:23 a.m. ET, were down 78 points, or 0.23%, were down 18.25 points, or 0.41%, and were down 107 points, or 0.7%.

Investors awaited a slew of economic data later in the day, including the initial jobless claims for the week ended June 10 and retail sales for May due at 8:30 a.m. ET.

Kohls Corp added 1.7% after TD Cowen upgraded the department store operator to “outperform” from “market perform”.

U.S.-listed shares of Chinese companies such as Alibaba (NYSE:) Group and JD (NASDAQ:).com rose almost 2% after the People’s Bank of China cut the borrowing cost for its medium-term policy loans for the first time in 10 months.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 98,745.46 0.63%
ethereum
Ethereum (ETH) $ 3,470.28 4.77%
tether
Tether (USDT) $ 1.00 0.21%
solana
Solana (SOL) $ 262.28 2.45%
bnb
BNB (BNB) $ 673.73 8.09%
xrp
XRP (XRP) $ 1.57 9.01%
dogecoin
Dogecoin (DOGE) $ 0.460797 15.04%
cardano
Cardano (ADA) $ 1.13 24.08%
usd-coin
USDC (USDC) $ 0.999667 0.13%
staked-ether
Lido Staked Ether (STETH) $ 3,466.36 4.60%
tron
TRON (TRX) $ 0.21999 10.40%
avalanche-2
Avalanche (AVAX) $ 42.84 10.39%
shiba-inu
Shiba Inu (SHIB) $ 0.000027 11.13%
the-open-network
Toncoin (TON) $ 6.22 13.60%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,107.13 4.93%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,361.35 0.73%
stellar
Stellar (XLM) $ 0.470971 58.00%
polkadot
Polkadot (DOT) $ 8.35 34.57%
chainlink
Chainlink (LINK) $ 17.59 15.96%
bitcoin-cash
Bitcoin Cash (BCH) $ 535.13 11.05%
sui
Sui (SUI) $ 3.64 3.42%
weth
WETH (WETH) $ 3,465.49 4.68%
pepe
Pepe (PEPE) $ 0.000022 7.35%
leo-token
LEO Token (LEO) $ 8.60 2.46%
near
NEAR Protocol (NEAR) $ 6.45 14.87%
litecoin
Litecoin (LTC) $ 103.23 14.37%
aptos
Aptos (APT) $ 12.99 9.50%
uniswap
Uniswap (UNI) $ 10.82 14.49%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,650.31 4.70%
hedera-hashgraph
Hedera (HBAR) $ 0.152986 16.36%
internet-computer
Internet Computer (ICP) $ 11.60 17.26%
crypto-com-chain
Cronos (CRO) $ 0.197893 6.16%
usds
USDS (USDS) $ 1.00 1.19%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.577478 26.30%
ethereum-classic
Ethereum Classic (ETC) $ 30.48 10.39%
render-token
Render (RENDER) $ 8.06 12.36%
kaspa
Kaspa (KAS) $ 0.161979 9.46%
bittensor
Bittensor (TAO) $ 539.45 9.90%
bonk
Bonk (BONK) $ 0.000051 1.61%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.33%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.42 14.91%
vechain
VeChain (VET) $ 0.043956 35.40%
arbitrum
Arbitrum (ARB) $ 0.866441 8.04%
whitebit
WhiteBIT Coin (WBT) $ 24.67 0.15%
dogwifcoin
dogwifhat (WIF) $ 3.52 11.56%
dai
Dai (DAI) $ 0.999322 0.26%
mantra-dao
MANTRA (OM) $ 3.75 1.54%
cosmos
Cosmos Hub (ATOM) $ 8.34 17.17%
filecoin
Filecoin (FIL) $ 5.31 14.40%
blockstack
Stacks (STX) $ 2.12 12.02%