Topline
U.S. stock futures were up early on Tuesday morning, signaling a mild recovery, a day after a rout pushed the S&P 500 into bear market territory amid fears that the Federal Reserve will announce a sharper interest rate hike later this week.
U.S. Stock futures were up slightly on Tuesday morning after Monday’s massive rout.
Key Facts
Dow Jones Industrial Average futures were up 131 points or 0.43% while S&P 500 futures rose 20 points or 0.5%.
Futures for the tech-focused Nasdaq index were up 87 points or 0.77%.
Markets in Europe remained relatively flat with the London-based FTSE 100 index up only 0.08%, two hours after markets opened, while the pan-European Stoxx 600 was down 0.1%.
Markets in the Asia Pacific region, however, were hit badly in early trading and were still down in the afternoon with Australia’s ASX 200 index slumping by more than 3.5% while Japan’s Nikkei 225 index fell by 1.32%.
Despite the emergence of more Covid-19 cases in China, the Shanghai Composite Index was up by around 1% in the afternoon while Hong Kong’s Hang Seng Index remained flat after managing to reverse early losses.
Following a massive rout on Monday, the price of Bitcoin continued to hover at December 2020 levels of around $22,300, down more than 24% compared to the previous week.
Key Background
U.S. stock markets slumped sharply on Monday amid concerns about the Federal Reserve’s policy meeting scheduled later this week. The benchmark S&P 500 index has now dropped more than 20% from its record high at the start of 2022, putting it firmly in bear market territory. Stung by sharp inflation, the Fed is expected to announce a sharper-than-expected hike in key interest rates later this week, something investors fear could trigger a global recession. Market sentiments were also impacted by the Labor Department’s report last week that annual inflation in the U.S. unexpectedly jumped to 8.6% in May—the biggest 12-month rise in consumer prices since 1981.
Further Reading
Dow Plunges Nearly 900 Points, S&P 500 Enters Bear Market Territory As Inflation Fears Roil Markets (Forbes)
Source: https://www.forbes.com/sites/siladityaray/2022/06/14/us-stock-futures-up-after-mondays-market-rout/