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Equity futures will fall 1% as the S & P 500 tracks the worst first half since 1970.

US stock index futures fell early Thursday morning as the S & P 500 prepares to finish its worst first half in decades.

Futures contracts related to the Dow Jones Industrial Average fell 1% or 309 points. S & P 500 futures fell 1.23%, while Nasdaq 100 futures fell 1.45%.

in the meantime Normal transaction The Dow advanced 82 points, or 0.27%, for the first positive day in three days. Both the S & P 500 and the Nasdaq Composite recorded negative days for the third consecutive day, down 0.07% and 0.03%, respectively.

The Dow and S & P 500 have been on track for the worst three months since the first quarter of 2020, when shares plunged due to the blockade of Covid. The technology-intensive Nasdaq Composite has fallen by more than 20% in the last three months, the worst growth since 2008.

The S & P 500 is on track in the first half of the worst since 1970, as a myriad of factors are putting pressure on the market.

John Lynch, Chief Investment Officer of Comerica Wealth Management, said:

“”[T]The combination of the blockade of COVID-19 in China and Russia’s invasion of Ukraine further increased volatility and investors [a] A global recession will occur next year, “he added.

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The Federal Reserve is taking positive steps to curb the sharp rise in inflation, which has risen to its highest level in 40 years.

Loretta Mester, President of the Federal Reserve Bank of Cleveland, tells CNBC that she Supports hiking at 75 basis points If the current economic situation continues, at the upcoming July meeting of the central bank. At the beginning of June, the Fed raised its benchmark interest rate by three-quarters percentage points. Largest increase since 1994..

Some wall street watchers are worried that too aggressive action could put the economy in recession.

“I don’t think the stock market has bottomed out yet, and we expect it to fall further. Investors should now have a high level of cash,” said George Ball, chairman of Sanders Morris Harris. rice field.

“The Federal Reserve’s aggressive anti-inflationary measures have bottomed out at around 3,100, but the necessary anti-inflationary measures are likely to depress corporate profits and stock prices,” he added.

All three major averages are on track until the end of June with losses. The Nasdaq Composite Index has been on a downward trend for the third straight month. The Technology Heavy Index was particularly hit as investors turned away from the growth-oriented areas of the market. Rising interest rates do not make future profits as promised by growing companies attractive.

The index is more than 30% below its all-time high on November 22nd. This year, some of the big tech companies recorded a significant decline, with Netflix down 70%. Apple and Alphabet each lost about 22%, and Facebook parent Meta fell 51%.

In terms of economic data, the focus is on unemployed billing every Thursday. The economists surveyed by Dow Jones expect 230,000 first-time filers. Data on personal income and expenses will also be published.

On the revenue side, the Constellation Brands and Walgreens Boots Alliance posted quarterly updates before the opening bell, and Micron is on the deck after the market closes.

Equity futures will fall 1% as the S & P 500 tracks the worst first half since 1970.

Source link Equity futures will fall 1% as the S & P 500 tracks the worst first half since 1970.

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