Equity futures flat after the worst days of the S & P 500 since May, Fed meet first

US stock futures were nearly flat on Monday nights trading after a major sale on Wall Street was the worst day since May.

Dow Jones futures fell only 12 points. S & P 500 futures fell less than 0.1% and Nasdaq 100 futures were almost flat.

The main average fell on Monday This is due to a confluence of concerns such as the imminent Federal Reserve Board, the protracted Delta variant, China’s potential economic turmoil, and debt cap deadlines.

However, the stock price was well below the lows of the day.

The S & P 500 fell 1.7% on the worst day since May 12th of this year. At the lows of the day, the average of 500 shares was down 5% from its highs on a daytime basis. It is currently 4.1% of the record.

The Dow Jones Industrial Average plummeted 614 points (1.8%), the largest one-day decline since July 19. The Nasdaq Composite fell 2.2% as the market’s growth pocket was hit hardest.

The Federal Reserve Board of Governors will launch a two-day policy meeting on Tuesday, with investors seeking more information from Chair Jerome Powell about plans for central banks to curtail bond purchases, especially when that happens. I am.Powell Said last month He sees the Fed slowing $ 120 billion in monthly purchases at some point this year.

The Federal Reserve Board will release a quarterly economic forecast, the so-called dot plot, along with a statement on interest rates at 2:00 pm EST on Wednesday. Powell will hold a press conference afterwards.

“”We will need to see evidence that the Fed’s dot plots aren’t coming out in a market-stimulating way. “

Weakness in China’s stock market echoed on US stocks on Monday.Benchmark Hang Seng Index plummeted 4% as a struggling real estate developer China Evergrande Wobble to the default brink.

“We need to confirm evidence that the Chinese government is taking steps to control this,” Ma added.

Delta variants remain a global health threat to some Americans as the cold season approaches and vaccination continues to hesitate.

Stocks related to global growth on Monday suffered losses, and energy names were hit by a 2% drop in US oil prices. Banks have shut down as bond yields have fallen.

NS Cboe volatility index, Wall Street’s horror gauge surpassed 26 levels on Monday, the highest since May.

Investors are also concerned about the deadline for raising debt caps and the potential for tax increases. Congress rushed back to Washington from a break to pass a funding bill to avoid a government closure.

September is a historically volatile equity month, with many investors saying the market is set to recede after the S & P 500’s year-to-date 16% rise.Some strategists sell out on Monday Opportunity to buy..

“We believe that overnight escalated market sales are primarily driven by technical sales flows (“[commodity trading advisors] Marco Kolanovich, chief global market strategist at JP Morgan, said in a note on Monday.

Others have said that volatility is likely to persist until some risks are resolved.

“We’re not in the camp where this little pullback represents a special buying opportunity,” Ma said. “Depending on what happens at the Fed’s meeting, volatility can easily increase … similar to debt caps. Overhangs and subsequent negotiations will definitely push this into the network.”

Cryptocurrencies also retreated on Monday, with Bitcoin falling about 7% below that day.The slide resurfaced the debate about whether Bitcoin could be made Act as a safe asset..

FedEx, Adobe, AutoZone When Stitch fix We will report quarterly earnings on Tuesday.

— With a report from CNBC’s Hannamiao.

Equity futures flat after the worst days of the S & P 500 since May, Fed meet first

Source link Equity futures flat after the worst days of the S & P 500 since May, Fed meet first

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