Dow Jones Industrial Average futures are indicating a potential second day of losses at the start of the new quarter, driven by increases in bond yields and a decreased likelihood of the Federal Reserve cutting interest rates in June.
Futures linked to the 30-stock Dow have dropped by 311 points, or 0.8%, with UnitedHealth shares declining. S&P 500 futures are down by 0.7%, while Nasdaq 100 futures have slid by 0.9%.
The second quarter has begun on a challenging note for stocks, with inflation data from the end of last week and robust economic data on Monday leading to higher yields and diminishing expectations for a June rate cut by the Fed. Oil prices have also surged to a five-month high on Tuesday, contributing to inflation pressures.
The core personal consumption expenditures price index for February, released on Friday, showed a 2.8% annual increase, in line with the rates seen in December and January at 2.9%. The figure remains below the Fed’s 2% inflation target.
Source (CNBC)
