US stock futures rose slightly in pre-market trading on Thursday after a hawkish minute reading from the Federal Reserve’s latest policy position on Wednesday hinted that officials are preparing to intervene more aggressively to curb inflation, Send key indexes deteriorate in the previous session.
Futures linked to the S&P 500 Index rose 0.2%, while futures on the Dow Jones Industrial Average were mostly flat. Contracts in the Nasdaq Composite were also up 0.4% before the opening. The tech-heavy index, which started the week at 2%, capped its second straight session, down 2.2%. Meanwhile, the 10-year Treasury yield rose to 2.6% – the highest level in three years.
Conversations detailed in the minutes of the Fed’s March 15-16 meeting released on Wednesday indicated that policymakers would soon start Resolving the central bank balance sheet of 9 trillion dollarsincluding $4 trillion in asset purchases collected to calm markets after the pandemic in early 2020. The minutes also noted that many FOMC participants “would have favored a 50 basis point increase” in interest rates. In March, the Fed raised interest rates for the first time since 2018.
“When those minutes were really released this afternoon, I think what I really saw was the consolidation around the news that the Fed is very intent on fighting inflation,” said Lisa Erickson, Senior Vice President of the US Bank. Yahoo Finance Live said.
Economists at Bank of America, which recently adjusted the Federal Reserve’s request to include a 50 basis point rate hike in June and July, said in a note on Wednesday that the newly released minutes show enough evidence to tip the scales toward a twofold increase in May.
“The reality is that we are in an unknown state here and the Federal Reserve has had the difficult task of untangling the massive monetary support over the past two years,” Charlie Ripley, senior investment analyst at Allianz Investment Management, said in a note. “Against this backdrop, it is highly conceivable that uncertainty in the course of monetary policy will remain an integral part of the markets and that is exactly what we are seeing with recent moves in interest rates and risk assets.”
Another headwind that investors should continue to explore are developments in the Russo-Ukrainian War. United State Another set of sanctions was imposed on Wednesday That included a ban on US investments in Russia. The sanctions also targeted Russia’s Sberbank and Alphabank, two of the country’s largest financial institutions, as well as the two daughters of President Vladimir Putin, the wife and daughter of Russian Foreign Minister Sergei Lavrov, and senior members of Russia’s Security Council. However, power transactions have been missing from recent punitive measures.
Meanwhile, testifying before the House Financial Services Committee on Wednesday, US Treasury Secretary Janet Yellen warned that Russia’s war in Ukraine would have “enormous economic repercussions around the world,” including disruptions to the flow of food and energy.
Yellen also said that Russia He should be kicked out of the G20 Forum of Major EconomiesThe United States will boycott “a number of G-20 meetings” if Russian officials participate.
7:40AM ET: HP stock jumps after Buffett disclosed 11% of his stake
Warren Buffet’s Berkshire Hathaway in a new file late Wednesday The company disclosed the accumulated 121 million shares of HP An 11.4% stake, worth $4.2 billion.
HP stakes (HPQ) is up more than 13% in pre-market trading before the opening bell on Thursday.
“Berkshire Hathaway is one of the most respected investors in the world and we welcome them as an investor in HP Inc,” an HP spokesperson To Yahoo Finance by email.
The purchase is the latest in a recent shopping spree by Berkshire Hathaway. Buffet also acquired approximately 15% (worth $7.6 billion) in Occidental Petroleum (OXY) Last month.
7:10 a.m. ET: Contracts on the S&P 500, Dow and Nasdaq rise after heavy selling
Here’s how to trade US stock futures ahead of Thursday’s open:
S&P 500 futures contracts (ES = F.): +9.25 points (+0.21%) to 4485.00
Dow futures contractsYM = F.): +15.00 points (+0.04%) to 34414.00
Nasdaq futures contractsNQ = F.): +53.50 points (+0.37%) to 14,558.75
raw (CL = F.): +1.49 dollars (+1.55%) to 97.72 dollars per barrel
gold (GC = F.): + $6.70 (+0.35%) to $1,929.80 per ounce
Treasury for 10 years (^ degeneration): +0.00 basis points to produce 2.6090%
6:13pm ET Wednesday: Futures muted after two-day losing streak
Here is where the markets were trading before the evening session on Wednesday:
S&P 500 futures contracts (ES = F.): -3.00 points (-0.07%) to 4,472.75
Dow futures contractsYM = F.): -29.00 points (-0.08%) to 34370.00
Nasdaq futures contractsNQ = F.): -1.00 points (-0.01%) to 14,504.25 points
raw (CL = F.): +1.52 dollars (+1.58%) to 97.75 dollars per barrel
gold (GC = F.): + $5.00 (+0.26%) to $1,928.10 per ounce
Treasury for 10 years (^ degeneration): +5.3 basis points to produce 2.6090%
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed
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