Business

Equity futures flat after Dow and S & P record four consecutive days of losses following the Fed’s decision

US stock index futures changed little during Wednesday night trading. The Federal Reserve maintained the benchmark interest rate unchanged, Indicates that there is no immediate intention to remove the stimulus.

Futures contracts related to the Dow Jones Industrial Average rose 62 points. S & P 500 futures rose 0.14%, while Nasdaq 100 futures rose 0.17%.

Stock price has risen Fully during regular transactions following central bank commentary. The Dow rose about 340 points, or 1%, in the first positive session on the fifth and best days since July 20th. However, the 30-stock benchmark rose by more than 500 points at a time and then fell below its highest level of the day. point.

S & P rose 0.95%, recording four consecutive days of losing streak, the highest day since July 23rd. The Nasdaq Composite Index rose 1.02% and the Russell 2000 rose 1.48%.

A post-meeting Fed statement said, “If progress continues broadly as expected, the Commission will determine that the easing of the pace of asset purchases may soon be justified.” But no timeline is given..

The central bank launched a $ 120 billion monthly bond purchase program last year as the pandemic closed its economy. As economic conditions improve, more members of the Federal Open Market Committee are seeing top-notch rate hikes in 2022.

Stock Selection and Investment Trends from CNBC Pro:

“The Fed is strong enough for the economy to be self-sustaining and can begin to remove the monetary stimulus it has provided since the start of the Covid crisis,” said Chris Zaccalelli. Was shown. ” , Chief Investment Officer of the Independent Advisor Alliance.

“Although more turmoil could occur this fall, the downturn buys because the US economy as a whole is constructive, fundamentals are still healthy, and at this point the recession looks more than a year away. I think it’s worth it. ” He added.

But Wednesday’s move wasn’t enough to push stocks that week to the green. The Nasdaq Composite has fallen 0.98% in the last three sessions, while the S & P and Dow have fallen 0.84% ​​and 0.94%, respectively.

Some of this week’s weaknesses are Heavy debt Chinese real estate developer Evergrande. The company announced on Wednesday that the real estate group would pay interest on time. This eased some concerns.

In response to the reputation that September is also a tough time for equities, all three major averages have fallen by at least 2% that month.

“We believe the S & P 500 still has room for action, but one of the biggest downside risks comes from valuations with higher yields / ERP, lower liquidity and expected slower growth. “UBS said in a recent note to its customers.

On Thursday, the Ministry of Labor will announce its first unemployment claim number, but some companies are on the deck for quarterly updates, including: Darden Restaurant I will report before the market opens, Nike When Costco Wholesale We offer quarterly updates when the market is closed. Flash quotes for production and service PMIs for September will also be released.

Become a smarter investor CNBC Pro..
Get stock selection, analyst phone calls, exclusive interviews, and access to CNBCTV.
Sign up and get started Free trial today

Equity futures flat after Dow and S & P record four consecutive days of losses following the Fed’s decision

Source link Equity futures flat after Dow and S & P record four consecutive days of losses following the Fed’s decision

Back to top button