Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

U.S. Index Futures Slide as Growth Worries Linger After Fed

Published 20/12/2018, 04:04 pm
© Bloomberg. Pedestrians pass in front of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Jan. 8, 2018. U.S. stocks were mixed, with the S&P 500 Index on track for its first decline of the year, as investors assessed the prospects for corporate earnings, while the dollar strengthened after three straight weekly declines. Photographer: Michael Nagle/Bloomberg
NDX
-
US500
-
DJI
-
JP225
-
FDX
-
ESU24
-
TOPX
-

(Bloomberg) -- U.S. stock-index futures slumped, erasing an advance in early trading, as investors assessed the prospect for earnings next year following the Federal Reserve’s dialed-back expectations for tighter policy.

March e-mini contracts on the S&P 500 Index slid as much as 1.1 percent, reversing a 0.5 percent gain. Futures on the Nasdaq 100 Index and Dow Jones Industrial Average dropped more than 1 percent.

Key Insights

  • The S&P 500 fell 1.5 percent on Wednesday, breaking its February intraday low as markets revolted from what they saw as a less-dovish-than-hoped Fed rate increase. The central bank trimmed its outlook for hikes and cited softening global economic conditions.
  • The drop pushed the benchmark gauge’s 14-day relative strength index into oversold territory. It’s a technical signal that may indicate it will soon be time to buy U.S. stocks.
  • The Fed’s warning on softening global economic conditions echoed that of FedEx Corp (NYSE:FDX)., which on Tuesday cut its profit forecast amid a slowdown in global trade in recent months, with leading indicators pointing to an ongoing deceleration in the near term. The weaker outlook stoked concerns that the world economy is slowing amid rising trade tensions, especially between the U.S. and China.

Get More

  • Market Focus on Fed in 2019 May Be All About the Balance Sheet
  • Powell Enters Era of Rate-Hike Caution as Growth Headwinds Mount
  • In Friendless Stock Market, Powell Proves No Benefactor of Bulls
  • Goldman Says China-U.S. Deal Would Be 2019’s Top Economic Event
  • Policy Day: Asia Stocks Finding Direction Head for 20-Month Low
  • Japan Stocks Poised for Bear Market as Fed, BOJ Spark Concerns

Market Reaction

  • S&P 500 e-mini futures expiring in March fell 0.9 percent as of 1:02 p.m. in Hong Kong; the underlying gauge is on track to post its largest annual fall since 2008.
  • The MSCI Asia Pacific Index slumped 1.9 percent, set for its lowest level since March 2017.
  • Japan’s Nikkei 225 Stock Average extended its decline to 3.3 percent, while the Topix index dropped 2.8 percent, set to enter a bear market.

© Bloomberg. Pedestrians pass in front of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Jan. 8, 2018. U.S. stocks were mixed, with the S&P 500 Index on track for its first decline of the year, as investors assessed the prospects for corporate earnings, while the dollar strengthened after three straight weekly declines. Photographer: Michael Nagle/Bloomberg

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.