Futures tied to the Dow Jones industrial average fell 316 points, or 0.9%. S&P 500 futures fell 1.1%, while Nasdaq-100 futures fell 1.2%. St. Louis Federal Reserve Bank President James Bullard said in a speech that “the policy rate is not yet in a zone that can be considered sufficiently restrictive.” “The change in the stance of monetary policy appears to have had only a limited impact on observed inflation, but market prices suggest that deflation is expected in 2023,” Bullard added. The 2-year Treasury yield jumped to 4.42% on Thursday morning, raising fears that higher interest rates would push the economy into recession. Stocks more vulnerable to a recession and higher interest rates led the losses in premarket trading. Financials led by Wells Fargo were lower. Tech stocks Tesla and Netflix fell. The latest moves followed a down day on Wall Street, the second in three days. The S&P 500 and Nasdaq Composite fell 0.83% and 1.54%, respectively. The Dow Jones Industrial Average lost 39.09 points, or 0.12%. Downward pressure came from weak guidance from Target, which reported a drop in sales as inflation pinched shoppers heading into the holiday season. The Minneapolis-based chain closed 13% lower, while its future guidance called into question other retailers.
title: “Dow Futures Fall 300 Points As Interest Rates Jump Raising Recession Fears " ShowToc: true date: “2022-11-03” author: “Clara Alfonso”
Futures tied to the Dow Jones industrial average fell 316 points, or 0.9%. S&P 500 futures fell 1.1%, while Nasdaq-100 futures fell 1.2%. St. Louis Federal Reserve Bank President James Bullard said in a speech on Thursday that “the policy rate is not yet in a zone that can be considered sufficiently restrictive.” “The change in the stance of monetary policy appears to have had only a limited impact on observed inflation, but market prices suggest that deflation is expected in 2023,” Bullard added. The 2-year Treasury yield jumped to 4.42% on Thursday morning, raising fears that higher interest rates would push the economy into recession. “I see a labor market that’s so tight, I don’t know how you continue to reduce that level of inflation without having some real slowdown, and we may even have a contraction in the economy to get there,” he said. Kansas City Fed President Esther George told the Wall Street Journal on Wednesday. Stocks more vulnerable to a recession and higher interest rates led the losses in premarket trading. Financials led by Wells Fargo were lower. Tech stocks Tesla and Netflix fell. “Additional monetary tightening and the cumulative impact of this year’s rate hikes suggest recession risks remain elevated,” Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote in a note. “We continue to believe that the macroeconomic conditions for a sustained rally – that rate cuts and a slowdown in growth and corporate earnings are on the horizon – have not yet been created.” The latest moves followed a down day on Wall Street, the second in three days. The S&P 500 and Nasdaq Composite fell 0.83% and 1.54%, respectively. The Dow Jones Industrial Average lost 39.09 points, or 0.12%. Downward pressure came from weak guidance from Target, which reported a drop in sales as inflation pinched shoppers heading into the holiday season. The Minneapolis-based chain closed 13% lower, while its future guidance called into question other retailers.
