Several investors are now forecasting a hike of 75 basis point
this week instead of a 50 basis point hike, following a
hotter-than-expected inflation reading on Friday.
The two-year 10-year U.S. Treasury yield curve briefly inverted
for the first time since April, a move viewed by many as a
reliable signal that a recession could come in the next year or
two. [US/]
Shares of Apple Inc, Alphabet Inc, Microsoft Corp and Amazon.com
Inc dropped over 3% in early premarket trading.
"Reaction to Friday's print was really bad and now it is just
pure speculation on Wednesday's rate decision, with most looking
at 75bps," said Matthew Dibb, chief operating officer at crypto
fund manager Stack Funds.
"I think we see major stocks gap down 5% on open."
At 05:15 a.m. ET, Dow e-minis were down 605 points, or 1.93%,
S&P 500 e-minis were down 93.5 points, or 2.4%, and Nasdaq 100
e-minis were down 347.75 points, or 2.94%.
(Reporting by Sruthi Shankar in Bengaluru; Additional reporting
by Vidya Ranganathan in Singapore; Editing by Anil D'Silva)
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