Investors are waiting for economic clues
2022.12.05 06:50
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Investors are waiting for economic clues
Budrigannews.com – On Monday, futures on U.S. stock indexes fell as investors awaited additional data, such as a report on the services industry, to determine the Federal Reserve’s next move at its rate-setting meeting later this month.
Last week, the Nasdaq gained 2.1%, the Dow gained 0.24 percent, and all major Wall Street indexes posted gains for a second consecutive week.
However, equities lost some of their momentum toward the end of the week as a result of November’s robust payrolls report, which shattered hopes for a Fed that was less aggressive.
The U.S. central bank is expected to raise interest rates by 50 basis points next week, with a peak in May 2023, according to investors. (FEDWATCH) On December 13-14, the Federal Open Market Committee, which decides rates, meets for the last time. During this volatile year, the central bank tried to stop a rise in inflation that had been going on for a long time with record interest rate increases.
Concerns about an economic downturn have also arisen as a result of the aggressive policy tightening, with JPMorgan (NYSE:), Citigroupas well as BlackRock (NYSE:) among those that accept a downturn is reasonable in 2023.
The services sector grew at a slower rate in November than in the previous month, according to an anticipated Institute of Supply Management report.
After a survey that showed manufacturing activity contracted for the first time in two and a half years last month as higher borrowing costs weighed on demand for goods, the data are due at 10 a.m. Eastern Time.
Investors will also look at monthly factory orders, weekly claims for unemployment, producer prices, and the University of Michigan’s consumer sentiment survey this week for additional clues about the state of the U.S. economy.
We were down 139 points, or 0.4 percent, at 6:01 a.m. ET, down 17.75 points, or 0.44%, and down 33.75 points, or 0.28%.
Tesla shares (NASDAQ:) The electric vehicle manufacturer’s plans to reduce December Model Y production at its Shanghai plant by more than 20% from the previous month caused Inc to fall 1.7% in premarket trading.
US- recorded Chinese stocks like Alibaba (NYSE:) Group and JD (NASDAQ:).com each gained approximately 5.2%. China was going to announce a further easing of some of the most stringent COVID restrictions in the world as early as Wednesday.
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