Futures rise after falling
2022.12.08 07:23
Futures rise after falling
Budrigannews.com – On Thursday, ahead of the weekly report on jobless claims, futures on the U.S. stock index slid slightly, but investors remained concerned about the possibility of a recession brought on by an aggressive Federal Reserve.
Initial claims for state unemployment benefits for the week ending December 3 are likely to show a slight increase to 230,000, according to the Labor Department’s report at 8:30 a.m. Eastern Time.
Fears that the Federal Reserve might continue with a longer rate-hike cycle as it tries to control inflation were stoked last Friday by data showing that employers in the United States hired more workers and raised wages in November than anticipated.
In addition, Friday’s producer price index and the University of Michigan’s consumer sentiment survey, as well as next week’s consumer price data, will be scrutinized for additional clues regarding the Fed’s December 14 policy decision.
Investors anticipate that the U.S. central bank will raise the key benchmark rate by 50 basis points to 4.25 percent-4.50% in May 2023, when rates will reach their highest point.
This year, the U.S. central bank increased its policy rate by 375 basis points to a range of 3.75 percent to 4.0% from close to zero, which is the fastest rate increase since the 1980s.
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Top executives of major U.S. banks and institutions, including JPMorgan (NYSE:), have expressed concern about a recession as a result of the central bank’s aggressive approach. BlackRock, Inc. as well as Citi’s prediction of a possible economic downturn in 2023.
On Wednesday, the benchmark lost 3.6% over five sessions, while the Nasdaq has lost 4.5 percent over four sessions.
The recent widening of the inversion of the yield curve between 2-year and 10-year Treasury notes is frequently interpreted as a sign of a coming recession.
Luke Templeman, a thematic research analyst at Deutsche Bank (ETR:), stated, “The yield curve is hideously inverted, recession is coming, and stock markets typically bottom only after a recession has started.”
“However, markets can capitalize on any unexpected positives that do arise when the outlook is overwhelmingly negative and no one is positioned for good news.”
We were up 6 points, or 0.02%, 5.25 points, or 0.13%, and 28 points, or 0.24%, at 6:05 a.m. ET.
The majority of technology and growth stocks with megacaps, like Alphabet (NASDAQ:), Apple Inc. (NASDAQ:), Inc. NASDAQ: Microsoft Corporation, NASDAQ: Tesla Meta Platforms Inc. and Inc. (NASDAQ:) edged higher before the market opened.
Salesforce, Inc. After Baird downgraded the software company’s stock to “neutral,” Inc. fell 1.4%, while Rent the Runway Inc. rose 15.4% as the clothing rental company increased its 2022 revenue forecast, indicating strong demand.
