{"id":40387,"date":"2022-06-07T13:30:17","date_gmt":"2022-06-07T13:30:17","guid":{"rendered":"https:\/\/harchi90.com\/stock-futures-slip-amid-retail-worries\/"},"modified":"2022-06-07T13:30:17","modified_gmt":"2022-06-07T13:30:17","slug":"stock-futures-slip-amid-retail-worries","status":"publish","type":"post","link":"https:\/\/harchi90.com\/stock-futures-slip-amid-retail-worries\/","title":{"rendered":"Stock Futures Slip Amid Retail Worries"},"content":{"rendered":"
US stock futures edged down after a profit warning from Target cast a pall over the retail sector and Australia’s central bank spooked investors with a bigger-than-expected interest-rate increase. <\/p>\n
Futures tied to the S&P 500 declined 0.9%, reversing direction after the broad-market index closed up 0.3% on Monday. Nasdaq-100 futures fell 1.3%, pointing to losses for technology stocks after the opening bell. <\/p>\n
Stocks have swung in recent days, buffeted by shifts in views about the strength of the economy and the likely path for central banks and interest rates. A big concern is that central banks could act too aggressively as they combat inflation and trigger a slowdown in economic growth, or even a recession. <\/p>\n
“We’re still in this constant push and pull about where inflation is going to be, where growth is going to be, and whether we’re going to be in a recession or not,” said Fahad Kamal, chief investment officer at Kleinwort Hambros. <\/p>\n
In premarket trading, Target plunged 7% after issuing a warning that its profit would decline because it needs to cancel orders or offer discounts to clear out unwanted goods, a potential sign of lower consumer spending. Shares of other big retailers followed, with Walmart and Costco declining 3%.<\/p>\n
The trade gap in the US for April narrowed to $ 87.1 billion, shrinking more than economists had forecast, after reaching a record deficit the prior month. A key release this week will be the consumer-price index on Friday, which will be closely watched for signals on whether inflation is weakening or not. <\/p>\n
On Tuesday, the Reserve Bank of Australia lifted its key policy rate by 0.5 percentage point, more than expected. <\/p>\n
“The Australian central bank’s move, it’s a reminder that central banks can surprise on the upside. What does this tell us about what the Fed will do, what the ECB will do ?, \u201dMr. Kamal said. “More aggressive tightening directly equals a higher probability of a recession.”<\/p>\n
The yield on the benchmark 10-year Treasury note climbed to 3.060%, the highest level in nearly a month, before easing to 3.012%, compared with 3.037% on Monday. Yields rise when prices fall. <\/p>\n
“With yields at 3%, it shows that the market hasn’t decided if we’re going to have a recession or if we have one, how severe it’s going to be,” said Julien Lafargue, chief market strategist at Barclays Private Bank . “That is what you would want to own if you expect a recession.”<\/p>\n