US Stock Futures Edge Lower Wednesday 12/07 07:40
Wall Street futures edged lower Wednesday ahead of new employment and
wholesale price data with the Federal Reserve gauging its next step in its
fight to cool inflation.
(AP) -- Wall Street futures edged lower Wednesday ahead of new employment
and wholesale price data with the Federal Reserve gauging its next step in its
fight to cool inflation.
Futures for the Dow Jones Industrials slipped 0.4% and the S&P 500 fell 0.7%
just over an hour before the opening bell.
Stronger-than-expected economic data this week has dragged U.S. markets
lower on the expectation that the Federal Reserve will be forced to remain
aggressive with interest rates during its last policy meeting of 2022.
This week, the Dow has fallen 2.4%, the S&P 3.2%, and the tech-heavy Nasdaq
composite nearly 4%.
The U.S. will release data on weekly unemployment data on Thursday and on
wholesale prices Friday. The reports do not typically move markets but are
receiving elevated attention as they are some of the final data dumps before
the Fed meets next week.
On Tuesday, the U.S. releases critical data on consumer prices, the same day
the Fed opens its two-day meeting.
Most economists expect the Fed to raise interest rates by a half-percentage
point. It has raised its benchmark rate six times since March, driving it to a
range of 3.75% to 4%, the highest in 15 years. Wall Street expects the
benchmark rate to reach a peak range of 5% to 5.25% by the middle of 2023.
Wall Street, and the Fed, are hungry for any trend that suggests inflation
is easing. The Fed's aggressive rate hikes risk tipping the economy into a
Global shares also slipped Wednesday, with Hong Kong's benchmark down more
than 3%, as Beijing announced it was scaling back its "zero-COVID" policies.
In Asian trading, the Hang Seng index in Hong Kong fell 3.2% to 18,814.82.
The Shanghai Composite index was down 0.4% at 3,199.62.
The announcement by China's National Health Commission rolled back rules on
isolating people with COVID-19 and dropped virus test requirements for some
Experts say it might be at least mid-2023 before controls that disrupt
travel, trade and industry can be lifted completely, but world markets have
gyrated on speculation that major changes might be coming, helping return the
world's second-largest economy to a post-pandemic "normal."
Tokyo's Nikkei 225 index slipped 0.7% to 27,686.40 and the Kospi in Seoul
gave up 0.4% to 2,382.81. The Shanghai Composite lost 0.4% to 3,199.62, while
Australia's S&P/ASX 200 dropped 0.9% to 7,229.40.
Shares also fell in Mumbai and Bangkok.
China reported its imports and exports fell in November as global demand
weakened and anti-virus controls weighed on the second-largest economy.
In Europe at midday, Germany's DAX and the CAC 40 in Paris each declined
0.6%. Britain's FTSE 100 was down a slight 0.1%.
U.S. benchmark crude oil was unchanged at $74.25 per barrel in electronic
trading on the New York Mercantile Exchange.
Brent crude oil, the international standard for pricing, inched down 10
cents to $79.25 per barrel.
The dollar rose to 137.38 Japanese yen from 136.94 yen. The euro rose to
$1.0521 from $1.0468.
Small company stocks also fell, pulling the Russell 2000 index 1.5% lower.
The major indexes are on pace for a weekly loss after posting two straight