Dan Suzuki, Deputy CIO at Richard Bernstein Advisors, on inflation, interest rates and where the biggest investment opportunities are in the market reopening.
US stock futures traded lower ahead of Fed Chairman Jerome Powell’s monetary policy comments.
Major future indices suggest a 0.4% drop when the Wall Street session starts on Thursday.
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Investors heard about Powell last week when he testified before Congress, but the format on Thursday will be a question and answer session with The Wall Street Journal, which may be more enlightening than Powell’s responses to politicians.
The yield on the 10-year reference Treasury note was stable at 1.47% at the beginning of Thursday.
INVESTORS LOOK FOR FOOD FOR THE NEXT STEPS AS THE TWIST SPECULATION ABOVE
Investors are looking at the February jobs report on Friday. Economists expect employers to have created 180,000 jobs last month. The report also includes figures on how much wages are rising in the economy, a key component of inflation.
On Thursday, the Department of Labor released its count of new unemployment insurance claims last week. The expectation is for an increase of 20,000 to 750,000.
ADP’S REPORT SHOWS THAT PRIVATE COMPANIES ADDED 117,000 JOBS IN FEBRUARY
In Europe, London’s FTSE fell 0.8%, Germany’s DAX fell 0.4% and France’s CAC fell 0.1%.
Asian stocks fell on Thursday, following a decline on Wall Street, as another rise in bond yields has shaken investors who fear that higher inflation may prompt central banks to raise ultra-low interest rates.
Japan’s Nikkei 225 lost 2.1%, Hong Kong’s Hang Seng fell 2.2% and China’s Shanghai Composite index fell 2.1%.
On Wednesday, the S&P 500 fell 1.3% to 3,819.72, losing an initial gain. The retraction is the second loss followed by the benchmark, after recording its best day in nine months on Monday.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| I: DJI | DOW JONES AVERAGE | 31270.09 | -121.43 | -0.39% |
| SP500 | S&P 500 | 3819.72 | -50.57 | -1.31% |
| I: COMP | NASDAQ COMPOSITION INDEX | 12997.751682 | -361.04 | -2.70% |
Technology companies withstood the impact of sales, pulling the S&P 500 technology sector down 2.5%. Microsoft and Apple fell more than 2%.
The Dow Jones Industrial Average fell 0.4% to 31,270.09. The high-tech Nasdaq compound lost 2.7% to 12,997.75.
BIDEN TENSES $ 1,400 STIMULUS TO CHECK THE LIMITS OF INCOME BETWEEN THE PRESSURE OF MODERATE DEMS
Prospects are growing for the approval of President Biden’s $ 1.9 trillion COVID-19 aid package with $ 1,400 individual payments and there has been good news about vaccine distribution, so private analysts have been busy reviewing for up your economic forecasts.
Many believe that the United States economy this year could recover, with growth occurring at the strongest pace since 1984. This would mark a significant recovery from last year, when the economy contracted by the largest amount since 1946.
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In another trading session on Thursday, the US benchmark crude oil dropped 46 cents to $ 60.80 a barrel in e-commerce on the New York Mercantile Exchange. He earned $ 1.53 on Wednesday to $ 61.28 a barrel. Brent oil, the international standard, gave up 41 cents to $ 63.65 a barrel.
The Associated Press contributed to this article.