Tuesday, May 21, 2024
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Home Depot Declines As Dow Futures Lose More Than 200 Points To Start The Week. Constant Updates

While increasing rates continue to weigh on market confidence, U.S. stock futures declined on Tuesday.

Futures for the Dow Jones Industrial Average fell 274 points, or 0.8%. NASDAQ 500 futures

also down 0.8%, and Nasdaq-100 futures fell about 1%. Due to the Presidents Day holiday, U.S. markets were closed on Monday.

As the home improvement store reported fourth-quarter revenue that was less than anticipated, Home Depot shares dropped 3.8% in premarket trading. The business also provided a somber prognosis. After releasing its most recent quarterly data, Walmart, another component of the Dow, also saw a more than 2% decline.

The 2-year rate increased to 4.669%, while the benchmark 10-year Treasury yield increased to 3.87%. These changes add to rates’ gains from the previous week, when they had risen as traders struggled with hotter-than-expected inflation data. The Federal Reserve may decide to keep rates higher for longer, which might push the economy into a recession, traders fear.

These worries restrained stock prices last week. The Dow dropped 0.1%, marking its third consecutive weekly loss. The S&P 500 fell for a second week in a row, dropping 0.3%. The tech-heavy Nasdaq Composite defied the general upward trend by increasing 0.6%.

According to Doug Peta, chief U.S. investment strategist at BCA Research, “we believe a recession is essentially inevitable, but we do not expect it will occur until sometime between the beginning and the middle of 2024.” A delay of this nature would allow stocks to rebound.

The Fed is expected to publish the minutes of its meeting from January 31 and February 1 on Wednesday. After the meeting, the central bank raised interest rates by 25 basis points.

Source (CNBC)

 

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