[서울=뉴스핌] Reporter Ko In-won = U.S. stock index futures fell for the second day ahead of the release of the minutes of the March meeting of the Federal Open Market Committee (FOMC).
As of 7:37 a.m. eastern time on the 6th, the Chicago Mercantile Exchange (CME) S&P 500 futures (hereafter E-mini) were priced at 4480.50 points, down 0.88% from the previous closing price. Nasdaq 100 futures are down 1.45% and Dow futures are down 0.61% (210 points), respectively.
| Fed Chairman Jerome Powell on the New York Stock Exchange (NYSE) screen [사진=로이터 뉴스핌] |
Investors are anxiously waiting for the minutes of the FOMC to be released on the 6th at 2pm local time (3am Korean time on the 7th). The hawkish remarks of Rayle Brainerd, who was appointed as the Fed’s vice chairman on the 5th, sent the market into a panic as the Fed had already raised the benchmark interest rate at its March meeting and announced six more hikes in the future.
“Cutting inflation down is the most important thing,” Brainard said, stating that starting in May, the Fed will start shrinking its balance sheet at a ‘fast pace’ and continue tightening monetary policy through a series of rate hikes.
In response to such remarks, the US stock market expanded its decline and long-term interest rates soared. The 10-year yield rose to 2.56% the previous day, the highest since March 2019. Currently, it has risen to 2.63%.
Investors are preparing for the possibility that details related to the balance sheet contraction may come out in the minutes of the day. If a more hawkish trend is confirmed than expected, global financial markets, including the US stock market, are expected to fluctuate significantly.
Technology stocks, which led the market downturn the day before, have been showing a bearish trend even before the opening day. The stock prices of Tesla (stock name: TSLA) and Nvidia (NVDA), which plunged 4.7% and 5.2% the previous day, respectively, are falling 2-3% before opening.
Investors are also paying attention to additional sanctions against Russia. According to major foreign media such as the Financial Times (FT), the US is planning to announce new sanctions in coordination with the G7 and the European Union (EU) on the 6th (local time).
The United States has already announced a ban on new investment in Russia’s energy sector, which is expected to be included in a broader set of sanctions that will result in further isolation from Russia’s economy, finance and technology sectors.
As war conditions are rising again, international oil prices are rising from the previous day. Currently, West Texas Intermediate (WTI) futures are trading at $102.92 per barrel, up 0.94%, and Brent futures up 0.74% at $107.43 per barrel.
koinwon@newspim.com