U.S. stock futures went on sale Tuesday night on Wall Street because of concerns about a new Covid variant, Omicron, and the Federal Reserve’s consideration of a faster-than-planned taper. It was expensive in the deal.
Dow futures have risen by about 60 points. S & P 500 futures rose 0.4% and Nasdaq 100 futures rose 0.5%.
The key average has seen some volatile sessions starting last Friday when the Dow Jones Industrial Average experienced the worst day since October 2020. Stocks rebounded on Monday, but fell again on Tuesday.
Wednesday is the first trading day of the last month of 2021.
on Tuesday, The Dow lost more than 650 points. The S & P 500 fell 1.9% and the technology-focused Nasdaq Composite fell 1.6%. Russell 2000, a small cap benchmark, fell 1.9% as periodic names were dragged into the market.
Equities hit the session’s lows when Federal Reserve Chair Jerome Powell said the central bank would discuss accelerating the tapering of bond purchases at its December meeting. Despite the potential turmoil in Omicron, the Fed’s chief believes that slowing down monthly bond purchases can move faster than the $ 15 billion monthly schedule announced earlier this month. Said.
“At this point, the economy is so strong and inflationary pressures are higher, so it’s appropriate to consider ending the tapering of our asset purchases … probably a few months earlier,” Powell said. .. “I look forward to discussing this at the next meeting.”
Promoting the abolition of the Fed’s simple policies tells investors that central banks are focusing on dealing with inflation rather than a new threat from the pandemic.
Gregory Dako, Chief US Economist at Oxford Economics, said: “The market is on the rise of uncertainty about the effects of Omicron variants and the Fed’s board of directors in a situation of sustained inflation. It seems that he is having a hard time digesting the combination of pivots. “
Bond yields also fell on Tuesday, with the US Treasury falling 8 basis points to below 1.45% in response to growing concerns about Omicron.
The first new Covid variant detected in South Africa is currently confirmed in more than 12 countries, with many Restrict travel.. Tuesday’s denting feelings, Modana The CEO told the Financial Times: Expected to be less effective with existing vaccines For new variants.
Stocks closed the volatile month of trading on Tuesday. The Dow lost 3.7% in the second month in three months. The S & P 500 fell 0.8%, but the Nasdaq Composite rose 0.25% in November. Russell 2000 fell 4.3% in November, the worst month since March 2020.
Still, the key average is rising steadily over the year. The 2021 Dow is up 12.7% and the S & P 500 is up 21.6%. The Nasdaq Composite Index is up 20.6% this year.
On Wednesday, investors will evaluate the omicron variant updates and some major economic reports. November manufacturing PMI, ISM manufacturing prints, and October construction costs will be announced Wednesday morning.
ADP’s private salary data will be released at 8:15 am. Economists polled by Dow Jones predicted that 571,000 to 506,000 private jobs in October would be added in November.
Equity futures will rise before the first trading day in December
Source link Equity futures will rise before the first trading day in December