Stock futures are little changed as Wall Street weighs Russia-Ukraine tensions, potential Fed rate hikes
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Traders are seen working on the New York Stock Exchange’s floor in New York City. January 18, 2022.
Brendan McDermid | Reuters
Stock futures were not affected by the developments between Russia and Ukraine on Sunday evening, as investors remained vigilant to potential Fed rate rises and continued monitoring.
Futures linked to the Dow Jones Industrial Average increased 21 points or 0.06%. S&P 500 futures inched up 0.04%, while Nasdaq 100 futures edged lower by 0.03%.
This follows a rough week in stocks which was under pressure by a hot inflation reportFears and anxieties a Russian attack on Ukraine. The Dow and S&P 500 fell 1% and 1.8%, respectively, for the week. Nasdaq Composite, a tech-driven stock, fell more than 2 percent.
The Dow fell 503.53 points or 1.43 percent on Friday. The S&P 500 dropped 1.9% and the Nasdaq Composite shed 2.8%. As the White House warns that an attack on Ukraine can begin anytime now, and urges Americans not to return “immediately”, these declines are a result. Along with traditional safe havens such as Treasurys, oil prices rose Friday.
Robert Cantwell (chief investment officer, Upholdings) stated that the real concern is China backing Russia. The relationship between China and America continues to decline. “How it changes the U.S. relationships with the other economic superpowers – that’s what’s really scary and would affect economic outcome.”
An international phone conversation between the U.S. President and U.S. Vice President Joe Biden and Russian President Vladimir PutinBiden attempted dissuade Putin by addressing the issue in ‘The Great Debate with Putin. failed to achieve a breakthrough.
Some airlines also offer this service. halted or redirected flights to Ukraine amid the brewing crisisWhile the Pentagon directed, the departure of U.S. troops in Ukraine.
The potential effects of rising inflation on the U.S. economic are being considered by traders. They also consider the possible measures that the Federal Reserve might take to reduce the price rise.
Last week, the Labor Department announced that January’s inflation surged 7.5%. This is its largest gain since 1982. Rate-sensitive tech stocks were hit hard by the report, which briefly sent the 10-year Treasury yield above 2% — the first time since 2019 that the 10-year traded above that level.
James Bullard of St. Louis Fed stated after the release that he was open for a 50-basis rate rise next month and that he hopes to see an entire percentage point increase in hikes before July. Mary Daly, President of the San Francisco Fed, stated that it was certain. Sunday that the central bank should take a “measured” approach when raising rates.
Cantwell explained that “this week’s primary story was all regarding inflation.” “Every time that the inflation number is released, it surpasses expectations. And while the Fed signaled it would raise rates, they still haven’t raised them. Their ability to raise rates quickly will be impacted by how long they hold off.
Goldman Sachs’ economists are also available. raised their Fed forecast to seven hikes for 2022, and said it sees the 10-year hitting 2.25% this year.
The firm also lowered its 2022 S&P 500From 5,100, price target reduced to 4,900 It would only return 2.8% to where the benchmark was in 2021. Goldman stated that valuations will be impacted by higher rates.
Nvidia (Walmart, Shopify and AMC) are scheduled to release earnings reports this week.
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