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Futures point to more losses on Wall Street -Breaking

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© Reuters. FILE PHOTO – A sign indicating a ‘Wall St.’ is visible above the two signs stating ‘One Way’ in New York on August 24, 2015. REUTERS/Lucas Jackson/File Photo

(Reuters] – U.S. stocks futures were subject to a second round of selling after Friday’s selloff. The reason for the sale was fueled by increasing expectations that the Federal Reserve will increase interest rates faster following rising inflation data.

On Thursday the Dow and Dow plunged more than 1%, while tech-heavy Nasdaq fell 2% following data showing that consumer prices rose 7.5% in January. This was the largest annual rise in over 40 years. These numbers raise concerns about tightening monetary policy.

James Bullard of the St. Louis Fed Bank, who is a voting member on this year’s Fed rate-setting committee, said to Bloomberg News that he would like a full percentage point increase in rates over the next three policy meeting.

Traders have priced in a one-half-point rate rise in March, with only a slim chance for a smaller quarter point hike. There are also heavy bets that a policy path would result in rates reaching a range between 1.75%-2.0% by year’s end.

Stocks with high growth potential such as Apple Inc. (NASDAQ:), Amazon.com Inc. Microsoft Corp Premarket trading was lower for (NASDAQ:), indicating more weakness in the Nasdaq.

At 07.20 a.m. ET fell 84 points or 0.24% and 12.5 points or 0.28% respectively. ET also dropped 53.75 point or 0.37%.

All three major indexes showed weekly gains despite volatility. These were due to strong earnings and easing tensions between Ukraine, Russia, COVID-19 reductions, as well as lifting mask mandates from some states.

The University of Michigan Consumer Sentiment Index is now being analyzed by investors. They are expected to climb to 67.5 in February, from 67.2 January. That’s the lowest reading since November 2011.

Zillow Group, an online real estate platform (NASDAQ:) Inc, jumped 13.3% following beating Wall Street’s estimates for quarterly sales. This was aided by an 11-fold rise in revenues in the homes section.

Cloudflare Inc (NYSE:) Inc increased 4.0% due to breakeven earnings, and a more positive-than-expected outlook for the full year.

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