Dow futures jumped more than 200 points today, indicating Wall Street will recover tonight. following falling yesterday
As of 7:09 p.m. Thai time, the Dow futures index gained 204 points, or 0.65%, to 31,625 points.
Open-air stocks such as airlines, cruise ships, hotels and casinos all rallied in pre-Wall Street trading today. Responds to China’s announcement of easing COVID-19 control measures
China has cut the quarantine period for foreign tourists in government-prepared places to seven days from 14 days, while home quarantine has been reduced to three days from seven days.
The easing of such measures has taken place. After the cities of Shanghai and Beijing succeeded in controlling the spread of COVID-19.
The market was also supported by investor concerns regarding inflation. following falling commodity prices last week As a result, investors expected the Federal Reserve (Fed) to not raise interest rates as quickly and strongly as previously feared.
The CME Group’s FedWatch Tool indicates that investors are expecting The Fed will raise interest rates to a high of 3.50% in late 2022, down from an earlier forecast of 3.75 percent.
In addition, investors expect that The Fed will begin cutting interest rates in the summer of 2023.
Markets responded to the release of the University of Michigan’s US Consumer Confidence Index on Friday. Consumers expect inflation to hit 5.3% over the next year, even higher than the 4.2 percent surveyed in the same period last year. But it is below 5.4%, the preliminary figure polled two weeks ago.
Over the next five years, consumer expectations for inflation will hit 3.1%, although higher than the 2.8 percent surveyed in the same period last year. But it is below 3.3%, the preliminary figure polled two weeks ago. and in the range of 2.9-3.1% surveyed in the last 10 months.
Investors will keep an eye on the US’s 1/65 gross domestic product (GDP) tomorrow. After the US Commerce Department released its second estimate, the US economy contracted 1.5% from the previously reported 1.4% contraction in the first estimate, while analysts forecast a 1.3% contraction of the US economy.
The U.S. economy contracted in the first quarter of 2020, the first contraction since a recession in early 2020 was hit by the coronavirus pandemic.
If the US economy continues to contract in 2Q22, it will put the US economy into recession. due to the contraction of 2 consecutive quarters
At its monetary policy meeting on June 15, the Fed lowered its forecast for U.S. economic growth this year to 1.7 percent from 2.8 percent in March.
