Stock futures inch higher as investors brace for Fed minutes

Stock futures slightly increased in overnight trading as Wall Street was braced for the Fed’s latest meeting minutes.

Futures tied to the Dow Jones Industrial Average increased 47 points which are 0.14%. Futures linked to S&P 500 increased 0.12% and Nasdaq 100 futures increased 0.16%.

The concern that the Fed will keep increasing rates caught on to the investors during regular trading Tuesday.

The Nasdaq composite led the losses of the session, decreasing 2.5% while S&P 500 decreased 2%. Dow Jones decreased by 2.06%.

All major S&P sectors were over with losses.

The increasing bond yields also put the markets on the edge, with the rate on the 10-year Treasury note hitting the highest level since November.

“I think there’s a repricing of the equity market based on the view that the Fed will likely have to be higher for longer, and because of the rising interest rates,” Keith Lerner said.

When all the major averages stand for 2023 and February after posting their worst sessions of the year and the worst day since December 15.

Dow Jones Industrial Average decreased 0.05% in 2023, 2.81% in February, 10.35% off record, and 81.89 off the pandemic low.

S&P 500 increased 4.11% for the year. Decreased by 1.94% in February, 17.04% off the record, and 82.37% down because of the pandemic. 

Nasdaq Composite increased 9.8% for the year, it was down 0.8% for the month, 29.11% off record high, and 73.30% low because of the pandemic. 

Palo Alto Networks stock increased more than 7% in extended trading. Revenues also grew 26% year over year.

Coinbase shares decreased more than 1%. 

Toll brothers stocks increased by 3%. 

CoStar commercial real estate stock increased by 16%.

The equity market might see a decrease of 5%. While high-beta tech stocks could decrease by 5% to 10%.

“We think the Fed will need to cut the rates for the market to rally on a sustainable basis,” Kolanovic said.

The broader index decreased 2% on Tuesday to close at 3,997.34 and complete its worst day since Dec 15, when it decreased 2.5%. 

Futures tied to Dow Jones increased by 30 points which are 0.09%, those linked to S&P 500 increased by 0.07%, and Nasdaq 100 Futures increased by 0.11%. 

- Published By Team Nation Press News