May 19, 2022

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Stock futures flat as investors juggle Fed comments and policy

Stock futures flat as investors juggle Fed comments and policy

Traders on the floor of the New York Stock Exchange, March 17, 2022.

Brendan McDermid | Reuters

US stock futures were little changed overnight on Tuesday as investors continued to digest the Federal Reserve’s revelations on inflation and interest rates.

Dow futures fell only 11 points. S&P 500 futures were down 0.03% and Nasdaq 100 futures were down 0.05%.

On Tuesdaythe major averages rose as investors evaluated recent comments from Federal Reserve Chairman Jerome Powell. Last week, the Fed raised interest rates for the first time since 2018 He predicted a plan to raise prices by a quarter point in each of the six remaining meetings for 2022.

But then it appeared that Powell sharpened the rhetoric on Monday, When he promised to crack down on inflation.

“The labor market is very strong, inflation is very high,” said the central bank president of the National Association for Business Economics. “If we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so.”

The Dow Jones Industrial Average rose more than 250 points on Tuesday, aided by a 2.2% rise nike Stock of solid profits. The S&P 500 rose 1.1%.

The Nasdaq Composite was the best relatively, up 2%. ID padsAnd the AmazonAnd the an AppleAnd the Netflix And Google Father the alphabet All closed up.

The benchmark 10-year US Treasury yield on Tuesday reached 2.39% at session highs, its highest since May 2019.

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“Investor attitudes are bolstered by the fact that the stock market appears to be a little concerned about rising bond yields or that the Federal Reserve is getting hawkish by the day,” said Jim Poulsen, chief investment analyst at the Leuthold Group.

The S&P 500 is only 5% off its record and has crossed both the 50-day and 200-day moving averages.

Still, a famous activist investor Carl Icahn said on Tuesday that the economic downturn could be at.

“I think there could be a recession or even worse,” Icahn, founder and CEO of Icahn Enterprises, said on CNBC.Extra bell shutdownScott Wapner.

On the economic front, new home sales data for February will be released at 10 am on Wednesday.

Generals Mills, Centas and Tencent Holdings Inc. will announce their quarterly earnings before the bell on Wednesday. KB Home reports after the bell.