US stock index futures fell on Sunday after Wall Street’s worst week since January.
Dow Jones Industrial Average Futures
fell more than 170 points, or 0.5%, late Sunday, while S&P 500 futures
and Nasdaq-100 futures
posted a drop of nearly 1%.
just above $27,000, down about 60% from the all-time high reached last November. Raw price
So is Sunday.
down 880 points, or 2.7%, to close at 31,392.79; S&P 500
slipped 116.96 points, or 2.9%, to end at 3,900.86; and Nasdaq Composite
down 414.20 points, or 3.5%, to 11,340.02.
For the week, the Dow fell 4.6%, the S&P 500 fell 5.1% and the Nasdaq fell 5.6%. This was the biggest weekly drop since January for all three major benchmarks, according to Dow Jones Market Data.
Markets fell on renewed inflation worries, as a new report showed hotter-than-expected results. The consumer price index on Friday showed U.S. inflation rose 1 percent in May, well above the 0.7 percent monthly increase forecast by economists surveyed by the Wall Street Journal. Full-year interest rates rose 8.6%, topping a 40-year high of 8.5% seen in March.
Federal Reserve policymakers set to See you this weekand is expected to raise interest rates by 50 basis points, although some economists think that after Friday’s CPI report, There may be support for a more aggressive 75 basis point rally.
Stephen Innes, managing partner at SPI Asset Management, wrote in a note on Sunday: “US CPI in May was a nightmare for risk markets. “The market is now thinking more about the Fed pushing rates higher sharply to combat inflation and then having to cut it when growth slows.
That should leave traders and investors “considering how much more central banks tightening will be able to bring in and, therefore, how much higher yields could be from here. And we all know that nothing good happens when interest rate volatility spikes in capital markets,” he said.