Stock Futures Tick Lower as Investors Weigh Recession Risk: Live Updates
The minutes from the Federal Reserve's March meeting showed that officials were concerned about the potential for a recession, which moved the risk of a recession to the forefront of traders' minds.
Wall Street futures did not change much on Wednesday night as investors assessed the recession risk after the Federal Reserve's latest meeting minutes.
Futures linked to Dow Jones Industrial Average
The 60-point drop, or 0.2%, was a result of a decrease in the score by 0.2%.
Futures fell by 0.1%. Futures linked to the
The fall in the price of goods and services fell by 0.2%.
The regular session of trading on Wednesday ended with a decline. The
Closed 0.41% lower than the previous day, while
Dropped 0.85%. The Dow ended the day with a 38.29 point loss, or 0.11%, snapping a four-day streak of gains.
The major averages are first released earlier in the session.
Consumer Price Index Report for March
The headline pressures were lower last month. The CPI increased by 0.1% in March compared to the previous month and 5% compared to the year before.
The afternoon after the release, traders' sentiment changed.
The Federal Open Market Committee met in March. The Fed is expecting a recession to occur later this year as a result of the recent banking crises.
Ed Moya is a senior market analyst with Oanda. He said that Wall Street was focusing more on the Fed Minutes than the inflation report, which had been a bit cooler than expected. This prompted fears of a recession as the bank earnings were near.
The Bureau of Labor Statistics will release its report on the Producer Price Index at 8:30 am ET. ET is due on Thursday. Also due on Thursday is the weekly jobless claims. Wall Street will also be watching the start of major corporate earnings, including commercial banks, on Friday.
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Julian Emanuel is the senior managing director at Evercore ISI and says that although pressure continues to be felt on the stock market, price movements are not the main focus.
He said, "It is all about the earnings."
Stocks make the biggest moves in after-hours trading
Look at the companies that are making news in after-hours trading.
The shares of the electric car giant fell 0.3% during extended trading hours. The company will report second quarter earnings next Wednesday. Investors are looking for any guidance from Tesla on future price cuts, following the recent reductions in the Model 3 and Model Y.
Just a few days ago,
The chipmaker's stock gained 0.3%, after falling during regular trading hours. Broadcom shares fell earlier on Wednesday after the European Commission raised competition concerns about the company's plan to purchase cloud computing firm
Qualcomm, a peer semiconductor giant, added 0.5% to its stock price after the closing bell. This is just one day after it closed 1.05% higher than the benchmark S&P500. The semiconductor sector has done well in advance of the upcoming earnings season, despite
Wall Street predicts a bottom for the sector
After hours, the retail giant pulled back by 0.23%. This was a day after it announced plans to shut down four warehouses in Chicago and launch a bond issue. Walmart has plans to expand its operations in other areas.
Automating its warehouse operations
to manage inventory.
Investors Intelligence: 'Sentiment allows for higher markets'
Investors Intelligence's latest survey, conducted this week, found that "[s]entiment allows for higher market."
II stated that the percentage of bullish advisers remained the same at 48.7%, compared to 48.6% the previous week. The danger zone is not breached until this number reaches more than 55%. Bulls outnumbered bears for the 21st consecutive week, which is "another good sign."
The number of bearish advisors dropped to 24,3% last week from 25,4%, and those who called for a correction increased to 27% from 26,4%.
The "bull-bear" spread rose from 23.6% to 24.4% a week earlier.
Investor sentiment is a contrarian indicator because, according to the assumption, the more bullish people are, the less money they have on hand for stock purchases. The more bearish the investors are, the higher the likelihood that they have sold.
-- Scott Schnipper