Nasdaq 100 futures fell as investors braced themselves for another interest rate hike.
The Federal Open Market Committee (FOMC) meeting this week, scheduled for Tuesday and Wednesday, is expected to raise interest rates by up to 75 basis points.
The US stock market is getting worse as investors become more cautious. This is shown by the falling Nasdaq 100 futures.
Futures on the technology index fell 0.74%, while those on the Dow Jones Industrial Average (INDEXDJX: .DJI) fell 179 points, or 0.53%. The futures on the S & amp; P 500 (INDEXSP: .INX) were also hit hard, falling 0.6% in pre-market trading.
The current losses began last week, when the Bureau of Labor Statistics released its Consumer Price Index (CPI) data and other key indicators indicating that inflation was at 8.3%. While this is arguably a milder figure than the 8.5% recorded in July, it is still extremely high, and the Federal Reserve has stated that it will not rest until inflation falls to the 2-4% range.
The Federal Open Market Committee (FOMC) meeting this week, scheduled for Tuesday and Wednesday, is expected to raise interest rates by up to 75 basis points. If this is the hike announced, it will be the third time in a row that the Fed has raised rates in this manner.
The stock market indices plummeted last week due to bearish expectations caused by uncertain inflation offsets. FedEx Corporation (NYSE: FDX), an American multinational holding company that focuses on transportation, e-commerce, and business services, has said that the global economy may “significantly worsen.”
Futures, Indexes, and Rate Hike Projections for the Nasdaq 100
The pressure on Nasdaq 100 futures may be exacerbated this week, as the Federal Reserve’s upcoming meeting will take into account the latest economic growth and inflation data. It will also take into account the August housing data, which is set to be released on Tuesday.
“As the S & amp; P 500 hovers below the crucial 3,900 level and the 10-year Treasury yield approaches 3.5%, the Fed-sensitive 2-year Treasury note flirts with 3.9%, implying that the Fed’s aggressive campaign to kill off inflation should be taken seriously,” said Quincy Krosby, chief global strategist at LPL Financial. “The canary in the coal mine may not be dead yet, but it is most likely struggling to breathe.”
With the current market outlook, deciding what to invest in necessitates a significant permutation among investors and traders. In these uncertain times, investors’ main goal is to keep the assets or capital they already have. However, they also want to make positive changes that could lead to profits.
With the weight of these uncertain economic times bearing down on indexes, stocks, and the broader cryptocurrency industry. Still, investors should look at investments like specialized exchange traded funds (ETFs) that have the potential to go up when market conditions are good and bet on them if they are willing to take on enough risk.