[ad_1]
Guggenheim Partners founder and global CEO Scott Minerd provides his view on future interest rates on Kudlow
US stock futures were trading lower after Federal Reserve officials indicated that they expect interest rates to rise by late 2023.
Major futures indexes suggested a 0.4% drop when the Thursday trading session on Wall Street begins.
On Wall Street, the benchmark S&P 500 index fell 0.5% on Wednesday after the Fed’s forecast showed that some of its board members expect short-term interest rates to rise by half a percentage point by late 2023. Very low rates from the Fed and other central banks It prompted a global stock market rebound from last year’s plunge amid the coronavirus pandemic.
Get your FOX business on the go by clicking here
The Federal Reserve’s announcement reflected growing confidence in the US economy as more people are vaccinated against the coronavirus and business is revived.
Investors are concerned that the Fed and other central banks may feel pressure to withdraw stimulus to cool rising inflation. Federal Reserve officials said they believed inflation would be short-lived, a position they reiterated on Wednesday.
Fed expects ‘transitional’ inflation, but warns it could be ‘higher’ than expected
Federal Reserve Chairman Jerome Powell said conditions have improved enough to begin discussing when bond buying should be slowed. The Fed buys $120 billion a month to pump money into the financial markets and keep long-term interest rates low.
Before the opening bell, the Labor Department dumped its tally of new claims for unemployment benefits last week. The forecast is 359,000, down from the epidemic low of 376,000 the previous week.
Also, the Philadelphia Federal Reserve released its June index of manufacturing activity for eastern Pennsylvania, southern New Jersey and Delaware. It is expected to fall by half a point to 31.0 from 31.5 in May. Remember that any reading above zero means that more manufacturers are saying business conditions are improving rather than getting worse.
In Europe, London’s FTSE is down 0.4%, Germany’s DAX is down 0.1% and France’s CAC is down 0.1%.
In Asia, Tokyo’s Nikkei 225 lost 0.9%, Hong Kong’s Hang Seng rose 0.4%, and China’s Shanghai Composite added 0.2%.
Last Change Index Safety Index % I: DJI DOW JONES AVERAGES 34033.67 -265.66 -0.77% SP500 S&P 500 4223.7 -22.89 -0.54% I: COMP NASDAQ COMPOSITE INDEX 14039.683841 -33.17 -0.24%
On Wall Street, the S&P 500 fell to 4,223.70 while the Dow Jones Industrial Average lost 0.8% to 34,033.67. The Nasdaq Composite Index slipped 0.2% to 14,039.68.
Click here to read more about FOX BUSINESS
In energy markets, benchmark US crude lost 10 cents to $72.03 in electronic trading on the New York Mercantile Exchange. The contract rose 3 cents on Wednesday to $72.15. Brent crude, the price basis for global oil, fell 17 cents to $74.22 a barrel in London. It rose 40 cents in the previous session to $74.39.
The Associated Press contributed to this report.
[ad_2]
Picture Credit!