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Fed
Governor Lael Brainard said on Tuesday she expected a
combination of interest rate rises and a rapid balance sheet
runoff, spooking investors and dragging the tech-heavy Nasdaq
down more than 2%.
Megacap growth and technology stocks, whose valuations stand to
be pressured by higher bond yields, fell more than 1% in
premarket trading. The benchmark 10-year yield hit a three-year
high of 2.633%. [US/]
Tesla Inc, Meta Platforms Inc, Apple Inc, Amazon.com Inc,
Alphabet Inc and Microsoft Corp fell between 0.9% and 1.9%.
The Federal Open Market Committee's minutes from its March
meeting, set to be released at 1800 GMT, could indicate just how
fast and how far policymakers will proceed in trimming several
trillion dollars from the stash of assets purchased to stabilize
financial markets through the pandemic.
Meanwhile, traders now see 83.1% odds of a 50 basis points rate
hike at the Fed's meeting in May. [IRPR]
The CBOE Volatility index, widely known as Wall Street's fear
gauge, rose to 22.8 points, highest since March 28.
At 06:37 a.m. ET, Dow e-minis were down 184 points, or 0.53%,
S&P 500 e-minis were down 31.25 points, or 0.69%, and Nasdaq 100
e-minis were down 156 points, or 1.05%.
Investors also awaited details of the latest package of
coordinated sanctions by the West being readied against Russia
in response to civilian killings in Ukraine.
JetBlue Airways Corp fell 3.7% after the carrier said on Tuesday
it made an unsolicited $3.6 billion bid for Spirit Airlines Inc,
potentially snarling merger plans between the ultra-low-cost
carrier and Frontier Group Holdings Inc. Frontier Group and
Spirit Airlines fell 3.9% and 1.2%, respectively.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by
Shounak Dasgupta)
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