Latest Post

Stock futures fell slightly after a major comeback week for stocks RBC top analyst sees comeback


Stock futures fell marginally in overnight trading on Tuesday after two consecutive days of gains on Wall Street.

Futures on the Dow Jones Industrial Average fell 55 points. The S&P 500 futures and Nasdaq 100 futures both lost just 0.2%.

Investors brushed off some signs of an economic slowdown ahead of a key inflation reading. The S&P 500 edged up nearly 1% for the second day in a row. The 30-stock Dow advanced more than 260 points on Tuesday, while the tech-heavy Nasdaq Composite gained 0.9%.

Target on Tuesday cut its profit guidance, saying Plan to get rid of excess inventory, The development highlighted the risks of economic growth amid rising inflation. Meanwhile, the Atlanta Federal Reserve’s GDPNow tracker showed Growth rate of just 0.9% for the second quarterdown from 1.3% last week.

,[The] “The market may continue to reflect concerns about tightening financial conditions and slowing earnings growth,” Lauren Goodwin, economist and portfolio strategist at New York Life Investments, said in a note.

All eyes will be on the Consumer Price Index for Friday of May. Many believe the print will be crucial to the path of Fed policy and whether the central bank will raise rates in 50-basis-point increments.

The stock market has had a roller-coaster year as the Fed’s aggressive rate hikes raised fears of a recession. The S&P 500 is down about 14% from its all-time high in January. Equity benchmarks briefly plunged into bear market territory on an intraday basis last month.

“The question is whether this slow tightening momentum is due to a belief that the Fed will meet its policy targets or whether the economy is headed for a recession,” said Gargi Choudhury, head of iShares investment strategy at BlackRock. “We believe America will survive the recession.”

A slew of retailers and consumer companies will report quarterly earnings on Wednesday, including Campbell’s Soup, Ollie’s Bargain Outlets and Five Bottoms.



Source link

Leave a Reply

Your email address will not be published.