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Friday’s Stock Futures Rise As The S&P 500 Attempts To End Its Three-Week Losing Streak: Live Updates

U.S. stock futures increased on Friday as traders considered the Federal Reserve’s rate-hiking strategy in light of recent remarks from speakers from other central banks.

S&P 500 futures increased by 0.2%, while Nasdaq-100 futures rose by 0.3%. Futures for the Dow Jones Industrial Average increased by 33 points.

These actions coincide with a decline in US Treasury yields. More than 6 basis points were lost, bringing the benchmark 10-year yield to 4%. To 4.855%, the 2-year rate decreased.

The main averages are headed for a profitable week. The Nasdaq is up 0.6% and the S&P 500 is up 0.28%, on track to end a three-week slump. Also, up 0.6% for the week is the Dow.

The Dow had its best day since February 13 on Thursday, finishing 1.1% higher. The Nasdaq Composite and S&P 500 both increased by 0.8%.

grew by 0.7%. These advances followed Raphael Bostic, president of the Atlanta Fed, saying that he believed the central bank might raise interest rates by 25 basis points, as opposed to the half-point increase that some other officials preferred.

But, in his remarks to the Mid-Size Bank Coalition of America, Fed Governor Christopher J. Waller adopted a more confrontational tone, highlighting the potential of a higher terminal rate if inflation numbers don’t decline.

He made mention of the most recent readings of the consumer price index and personal consumption expenditures reports, as well as the significant payrolls data from January, which showed the economy generated 517,000 jobs.

The policy goal range will need to be expanded this year in order to prevent losing the momentum that existed before to the release of the January statistics, according to Waller, if those data reports keep coming in too hot.

Despite the messages the central bank is sending the public, the path ahead remains difficult.

Peter Boockvar, chief investment officer at Bleakley, stated in a note that “there is no escaping the pitfalls of reversing exceptional easing, no matter how slow the Fed goes, no matter how much they ‘communicate’ what they plan to do.

There will never be a good time to ease up when markets and the economy have been dependent on and drugged by low rates and QE for so long, he said.

The Non-Manufacturing Purchasing Managers’ Index (PMI) report from the Institute of Supply Management is scheduled to be released on Friday morning. The Richmond Fed President Thomas Barkin and Fed Governor Michelle Bowman are two central bank officials whose additional commentary will be watched closely by investors.

Source (CNBC)

 

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