September 20, 2021
By Devik Jain
(Reuters) – US stock futures as concerns about the pace of economic recovery hit energy and bank stocks earlier in the week when the Federal Reserve Board decided to gradually curtail stimulus in the pandemic era. Fed more than 1% on Monday.
Futures that track the Dow Jones Industrial Average, which is built around stocks that rely on a steady economic recovery, fell 1.6% to 6:51 am ET, the lowest level since 20 July.
Energy stocks, including Chevron and ExxonMobil, led the decline in premarket trading, while industrial Boeing and Caterpillar fell 1.8% and 1.9%, respectively. [O/R]
Wall Street’s key indices were hit this month for fear that potential rises in corporate tax rates would weigh on earnings and result in uneven labor market recovery. The benchmark S & P 500 is on a rising track for the seventh straight month.
All eyes on Wednesday focus on the Fed’s policy meeting, where the central bank is expected to lay the groundwork for tapering, but there is consensus that the actual announcement will be postponed until the November or December meeting. .. [nL1N2QI1L8]
“Investors are nervous and volatility rises towards the Fed’s meeting, after which the Fed is dovish and volatility falls again,” said a Belenberg analyst.
“Given that the market is ready to cut bond purchases and is unlikely to be available immediately, we anticipate a similar pattern this time around.”
Known as Wall Street’s horror gauge, the CBOE Volatility Index reached its highest level in two months.
The S & P 500 e-minis fell 57.5 points (1.3%) and the Nasdaq 100 e-minis fell 152.75 points (1%).
Global markets, including commodities, have also recently been at stake over the serious problems of China Evergrande, the world’s most debt-rich real estate developer. [MKTS/GLOB] [nL1N2QM02L]
Economic bank stocks such as Morgan Stanley, JPMorgan Chase and Company, and Bank of America Corporation tracked US Treasury yields and fell between 2.2% and 3%. [US/]
Slate of US-listed Chinese stocks, including Weibo Corp, Bilibili Inc, Vipshop Holdings Ltd and Pinduoduo Inc, fell between 3.4% and 5.4% as regulatory crackdowns in China increased.
Cruise liners fell by about 3%, while United Airlines, American Airlines and Delta Air Lines fell 2% as the increase in COVID-19 threatened to delay the recovery of travel demand.
(Report by Devik Jain and Sagarika Jaisinghani in Bangalore, edited by Arun Koyyur and Maju Samuel)
Futures will fall by more than 1% due to growth concerns.Focus is on the federal government
Source link Futures will fall by more than 1% due to growth concerns.Focus is on the federal government