Stock futures are little changed after major averages dip, investors mull slowdown

Traders work on the ground of the New York Stock Exchange (NYSE) in New York City, June 7, 2022.

Brendan McDermid | Reuters

S&P 500 futures have been flat Wednesday night time after the major indexes slipped into the pink on the finish of standard buying and selling and investors weighed the probability of a recession after Federal Reserve chair Jerome Powell acknowledged it is a chance.

Futures tied to the broad market index fell 0.02%, whereas the Dow Jones Industrial Average futures added 0.05%. Nasdaq 100 futures fell 0.1%.

In common buying and selling, the Dow retreated 47.12 factors, or 0.15%, within the ultimate hour of the session, after rallying to begin the day. The S&P 500 fell 0.13% and the Nasdaq Composite lost 0.15%.

The strikes got here after Federal Reserve chair Jerome Powell informed Congress the central financial institution is “strongly committed” to bringing down inflation. He additionally famous {that a} recession is a “possibility,” a concern that has continued to weigh on Wall Street.

“The odds are more likely in favor of a recession than not,” Dan Greenhaus, Solus Alternative Asset Management chief strategist, stated on CNBC’s “Closing Bell: Overtime.” “That speaks to the degree of tightening that the Federal Reserve is going to have to do now, having not done so in prior periods when perhaps they would have avoided some of the problems that are going to happen as a result.”

“Unfortunately, it’s going to be more economic pain than people at least six months ago anticipated, but are increasingly coming around to the reality that that’s probably what’s going to happen,” he added.

Elsewhere, power shares, which have been outperformers in 2022, took successful as oil costs fell on issues {that a} slower economic system may damage gas demand. The sector was the worst performing within the S&P 500.

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On Thursday, investors can be trying ahead to recent jobless claims knowledge. Powell may even give remarks to the House, after having addressed the Senate Wednesday. The remarks are a part of a congressionally mandated semiannual report on financial coverage.

It’s a quiet earnings week however Darden Restaurants will report its monetary outcomes for the latest quarter earlier than the opening bell Thursday. Rite Aid declares its newest outcomes the identical morning.

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