Stock futures are flat following a 2-day losing streak for the major averages

Stock futures are flat following a 2-day losing streak for the major averages

Stock futures have been flat in in a single day buying and selling Wednesday after a two-day losing streak for the major averages as traders digested the Federal Reserve’s plans to tighten financial coverage.

Futures on the Dow Jones Industrial Common dipped 30 factors. S&P 500 futures inched 0.1% decrease and Nasdaq 100 futures have been little modified.

The back-to-back sell-off got here as Fed assembly minutes confirmed that officers planed to cut back their trillions in bond holdings with a consensus quantity round $95 billion. In the meantime, policymakers indicated that a number of 50-basis-point rate of interest hikes could possibly be warranted to battle surging inflation.

“The minutes from the latest FOMC meeting portray a higher level of urgency than previous communication as the Fed has circled on a commitment to run the balance sheet down faster than market participants may have expected,” mentioned Charlie Ripley, senior funding strategist at Allianz Funding Administration.

Officers “generally agreed” that a most of $60 billion in Treasurys and $35 billion in mortgage-backed securities can be allowed to roll off, phased in over three months and sure beginning in Could. 

On Wednesday, the blue-chip Dow fell greater than 100 factors, whereas the S&P 500 slid 1%. The tech-heavy Nasdaq Composite dropped one other 2.2%, bringing its week-to-date losses to 2.6%.

“It does seem like they are talking up the possibility of raising rates by 50 basis points at the next meeting so the hope is that message is well telegraphed in advance,” mentioned Brian Value, head of funding administration at Commonwealth Monetary Community. “I expect that volatility will remain elevated for the time being as there is a lot of uncertainty for investors to digest right now.”   

Traders await the weekly jobless claims information Thursday morning, which is anticipated to point out a whole of 200,000 claims filed.

Shares of Levi Strauss & Co. rose greater than 1% in prolonged buying and selling Wednesday after the denim retailer reported its quarterly earnings and income that topped analysts’ estimates.

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