Wall Street Continues To React To Fed Decision, Might Open Lower
Investors might continue to react to the Fed’s decision to tackle inflation by raising interest rates by three-quarters of a percentage point on Wednesday. The latest decision might be disadvantageous to home, and car buyers and might push the cost of living higher. Initial Jobless Claims, Housing Starts, and Philadelphia-area Manufacturing Activity also might get special attention on Thursday.
Early cues from the U.S. Futures Index suggest that Wall Street might open in the red.
Asian shares finished broadly lower, while European shares are trading in negative territory.
As of 7.30 am ET, the Dow futures were losing 517.00 points, the S&P 500 futures were declining 80.25 points and the Nasdaq 100 futures were down 300.50 points.
The U.S. major averages finished firmly positive on Wednesday. The Dow jumped 303.70 points or 1 percent to 30,668.53, the Nasdaq spiked 270.81 points or 2.5 percent to 11,099.15 and the S&P 500 surged 54.51 points or 1.5 percent to 3,789.99.
On the economic front, the Commerce, Housing and Urban Development Departments for May will be released at 8.30 am ET. The consensus is 1.695 million, while it was up $1.724 million in the previous month.
The Labor Department’s Jobless Claims for the week will be published at 8.30 am ET. The consensus is 220K, while it was up 229K in the prior week.
Philadelphia Fed Manufacturing Index for June will be issued at 8.30 am ET. The consensus is 5.5, while it was up 2.6 in May.
The Energy Information Administration or EIA’s Natural Gas Report for the week is scheduled at 10.30 am ET. In the prior week, the Natural Gas stock was 97 bcf.
Two-year FRN Note announcement and Five-year Treasury Inflation-Protected Securities or TIPS announcements are scheduled at 11.00 am ET.
Fed Balance Sheet for the week will be released at 4.30 pm ET. In the prior week, the Level was at $8.918 trillion.
Asian stocks ended broadly lower on Thursday. China’s Shanghai Composite index ended 0.61 percent lower at 3,285.38. Hong Kong’s Hang Seng index tumbled 2.17 percent to 20,845.43.
Japanese shares eked out modest gains. The Nikkei average rose 0.4 percent to 26,431.20. The broader Topix index closed 0.64 percent higher at 1,867.81.
Australian markets ended slightly lower. The benchmark S&P/ASX 200 slipped 0.15 percent to 6,591.10, extending losses for a fifth straight session. The broader All Ordinaries index finished marginally lower at 6,783.70.
European shares are trading lower. CAC 40 of France is down 361.88 points or 2.69 percent. DAX of Germany is declining 122.88 points or 2.04 percent. FTSE 100 of England is sliding 169.15 points or 2.32 percent. Swiss Market Index is losing 300.20 points or 2.78 percent.
Euro Stoxx 50 which provides a Blue-chip representation of supersector leaders in the Eurozone, is down 2.36 percent.
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