June 29, 2022

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U.S. Stocks Likely To Move Back To The Downside In Early Trading

2 min read

After finishing the previous session sharply higher, stocks are likely to move back to the downside in early trading on Thursday. The major index futures are currently pointing to a significantly lower open for the markets, with the S&P 500 futures down by 1.7 points.

Concerns aggressive monetary policy action by central banks around the world may trigger a global recession are likely to weigh on Wall Street.

Following the Federal Reserve’s widely expected 75 basis point interest rate hike on Wednesday, the Swiss National Bank unexpectedly raised interest rates for the first time since 2007.

The Bank of England also announced another 25 basis point rate hike. The BoE’s Monetary Policy Committee voted 6-3 to raise the bank rate to 1.25 percent, the highest rate since early 2009.

In U.S. economic news, the Labor Department released a report showed a modest decrease in first-time claims for U.S. unemployment benefits in the week ended June 11th.

The report showed initial jobless claims edged down to 229,000, a decrease of 3,000 from the previous week’s revised level of 232,000.

Economists had expected jobless claims to dip to 220,000 from the 229,000 originally reported for the previous week.

Meanwhile, a separate released by the Commerce Department showed new residential construction in the U.S. plunged by much more than expected in the month of May.

The Commerce Department said housing starts tumbled by 14.4 percent to an annual rate of 1.549 million in May after jumping by 5.5 percent to a revised rate of 1.810 million in April.

Economists had expected housing starts to decrease by 1.3 percent to an annual rate of 1.701 million from the 1.724 million originally reported for the previous month.

The report also showed building permits slumped by 7.0 percent to an annual rate of 1.695 million in May after falling by 3.0 percent to a revised rate of 1.823 million in April.

Building permits, an indicator of future housing demand, were expected to decline by 1.9 percent to an…



2022-06-16 08:58:26

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