Thursday, February 22, 2024
HomeTrading RoomAs Wall Street Turns Back To The Direction Of Interest Rates, Stock...

As Wall Street Turns Back To The Direction Of Interest Rates, Stock Futures Decline

Early on Thursday, there was increased anxiety on Wall Street regarding the direction of the Federal Reserve’s interest rate policy and whether policymakers would implement another hike this year. As a result, stock futures declined.

The Dow Jones Industrial Average futures dropped 92 points, or 0.27%. Nasdaq futures fell 0.54% and S&P 500 futures dipped 0.36%.

During regular trading hours, technology companies underperformed the market the most, with the Nasdaq Composite closing 1.1% lower and recording its third straight losing session. Apple and Nvidia both had declines of more than 3%, pulling the tech-heavy index down.

Higher Treasury yields put pressure on tech companies and increased market apprehension that the Federal Reserve will use recent, stronger-than-anticipated economic statistics as justification for raising benchmark lending rates to fight inflation. The 2-year Treasury note’s yield increased by as much as 6 basis points on Wednesday.

According to a survey released on Wednesday, the pricing component of the Institute for Supply Management’s U.S. services index increased to 58.9% in August, reaching a six-month high. Prices as measured by the ISM index rose to a four-month high.

Source (CNBC)

- Advertisment -

Most Popular

Recent Comments