• February 28, 2024

Dow, S&P 500 futures point lower, on verge of longest losing streak in about 3 months

US stocks on Thursday were rated lower, with the top three benchmarks showing a fourth straight decline after a report on the Federal Reserve’s political meeting in late April found members began thinking about reducing items from the Central bank inspired to reflect on adjustment measures by the central bank.

Investors will watch for a weekly update of labor conditions and a reading of manufacturing activity in the Philadelphia area, both scheduled for release at 8:30 am Eastern Time.

How are stock benchmarks performing?

On WednesdayStocks ended well at the session lows but still lost ground. The Dow
DJIA, -0.48%
fell 164.62 points to close at 33,896.04, a 0.5% decline after falling more than 580 points from its session low. The S&P 500 Index
SPX, -0.29%
lose 12.15 points, or 0.3%, to end at 4,115.68. The Nasdaq Composite Index
COMP, -0.03%
ended practically flat at 3.90 points at 13,299.74, well below its Wednesday low of 13,072.23.

What is driving the market?

The stock benchmarks are likely to extend their decline on Thursday.

“While the momentum in US equities is weakening as fatigue sets in and fear builds slowly (increased volatility), we are missing a clear trigger for a significant, if temporary, setback,” wrote Sebastien Galy, strategist at Nordea Asset Management , in a daily note.

The emerging downtrend in US equity markets was attributed to concerns about high equity valuations, uncertainties about how the recovery will boost inflation, and concerns that signs of a surplus are building up in parts of the financial system.

With that in mind, turmoil has become a bigger feature of the market as investors analyze key data points and Fed comments that could provide clarity about the outlook for the economy and the market.

Market participants are still digesting Wednesday’s Fed minutes, which stated that “a number of participants have indicated that it may be appropriate in upcoming meetings to discuss an adjustment plan if the economy continues to move rapidly on target of the committee controls the pace of asset purchases. ”

Most Fed members have said that the economy has not made significant strides towards its goal of a healthy and dynamic job market that deserves shelters, but talk of rejuvenation has historically been a boogeyman for entering into Risks.

“For now – the question remains: when does the Fed think it has reached the landing pad for the economy and is inflation falling in the meantime?” Neil Wilson, chief market analyst at Markets.com, wrote in a note.

The decline in Bitcoin has contributed to general concerns about sentiment on Wall Street
BTCUSD, + 3.93%,
This was seen as a sign of a waning appetite for risk. Bitcoin made a U-turn from $ 10,000 on Wednesday, hitting a low of around $ 30,000, only to return at a price of around $ 40,000.

Looking ahead, a weekly jobless claims report is expected to be released later this morning as the Philadelphia Fed’s manufacturing index falls due and further evidence of price pressures in the economy is likely to be considered.

Among the Fed speakers, Rob Kaplan, President of the Dallas Fed, is expected to address the Borderplex Alliance at 10:30 a.m. Eastern. Kaplan was practically alone among Fed officials, arguing that policymakers should talk about a possible withdrawal of monetary aid.

Which companies are in focus?
  • Shares of Lithia Motors Inc.. BOY Premarket trading fell 0.8% Thursday, heading for a fourth straight loss after the auto dealer announced pricing on its $ 1 billion stock offering and increased debt offering.

  • Hormel Foods Corp.. HBW, Fiscal second quarter earnings and revenue on Thursday exceeded expectations and raised the outlook for the full year, even as volume declined.

  • Pfizer Inc.. PFE and German partner BioNTech SE BNTX On Thursday they reached a new agreement with the European Commission to deliver up to 1.8 billion additional doses of their COVID-19 vaccine.

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Jack

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