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US STOCKS-Futures rebound after rout on Wall Street

US STOCKS-Futures rebound after rout on Wall Street

Reuters · 09/14/2022 06:51
US STOCKS-Futures rebound after rout on Wall Street

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Futures up: Dow 0.43%, S&P 0.57%, Nasdaq 0.63%

- Wall Street futures rose on Wednesday as technology stocks rebounded from sharp declines in the previous session on rate hike jitters, while investors waited for another set of inflation data for cues on path of monetary policy tightening.

All three major U.S. stock indexes their biggest one-day percentage declines since June 2020 on Tuesday after a hot consumer price index report cemented bets that the Federal Reserve could go ahead with the third straight 75 basis points increase in rates week.

Markets are currently pricing in a 37% chance of a massive 100 bps increase by the central bank and expects rates to peak at 4.34% by March 2023. FEDWATCH

Stocks had rallied ahead of the inflation data as easing commodity prices, especially oil, had raised hopes the Fed would scale back its aggressive policy tightening even as policymakers reiterated their determination to bring inflation to their 2% target through rate hikes.

Focus turns to producer price index data due at 08:30 a.m. ET, which is seen decelerating to 8.8% year-on-year in August, from a 9.8% rise in July. It will be followed by monthly retail sales data on Thursday.

At 6:23 a.m. ET, Dow e-minis 1YMcv1 were up 134 points, or 0.43%, S&P 500 e-minis EScv1 were up 22.5 points, or 0.57%, and Nasdaq 100 e-minis NQcv1 were up 75.5 points, or 0.63%.

Rate-sensitive shares of technology and growth companies such as Tesla Inc TSLA.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Meta Platforms META.O, Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O advanced between 0.4% and 0.9% in premarket trading after leading declines on Tuesday.


(Reporting by Ankika Biswas and Devik Jain in Bangalore; Editing by Sriraj Kalluvila)

((Ankika.Biswas@thomsonreuters.com;))