Adviser Investments portfolio manager Adam Johnson on why it is bullish, as growing crises raise fears of a recession.
US stock futures traded lower before the last trading day of the week due to fears that interest rates would rise faster than expected.
Major futures indexes fall 0.4% when the Wall Street trading session begins.
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In a panel discussion hosted by the International Monetary Fund, Federal Reserve Chairman Jerome Powell said the Fed needed to act faster than before to deal with high inflation. He also warned that interest rates are likely to rise sharply in the coming months.
Federal Reserve Chairman Jerome Powell (AP Photo / Jacquelyn Martin, File) (AP Photo / Jacquelyn Martin, File / Associated Press)
Oil prices fell on Friday morning after a week filled with concerns about rising interest rates, global growth and the blocking of COVID-19 in China, which has boosted demand.
West Texas Intermediate (WTI) crude futures fell $ 1.80, or 1.7 percent, to $ 101.98 a barrel.
Brent futures fell $ 1.77, or 1.6 percent, to $ 106.56 a barrel.
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Friday’s earnings reports include telecommunications giant Verizon Communications, hospital operator HCA Healthcare, consumer finance firm American Express, oil services and offshore drilling giant Schlumberger, household product maker Kimberly-Clark and others.
Specialists on the floor of the New York Stock Exchange. (AP Photo / Richard Drew) (AP Photo / Richard Drew) / AP Newsroom)
The economic calendar is short for the weekend. Research firm IHS Markit is coming out with its PMI for fast production and services for April. Make sure that the production activity drops by six tenths of a point to 58.2. Activity in the services sector is expected to remain stable at 58.0. An indicator above 50 shows an expanding sector.
Bitcoin is trading over $ 40,000.
Powell’s comments on interest rates have made stocks in Asia mostly lower.
Japan’s Nikkei 225 benchmark fell 1.6 percent, Hong Kong’s Hang Seng fell 0.2 percent and China’s Shanghai Composite fell 0.2 percent.
Ticker security Last change Change% I: DJI DOW JONES AVERAGE 34792.76 -368.03 -1.05% SP500 S&P 500 4393.66 -65.79 -1.48% I: COMP NASDAQ COMPOSITE INDEX 13154407% -287% -25.
Powell’s remarks also brought down Wall Street. The S&P 500 closed 1.5% lower at 4393.66, after initially rising 1.2%. The Dow Jones Industrial Average fell 1% to 34,792.76 and the Nasdaq fell 2.1% to 13,174.65.
More than 80% of shares in the S&P 500 fell on Thursday, with technology stocks accounting for a large share of the decline. Microsoft fell 1.9 percent and chipmaker Nvidia fell 6 percent.
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Shares of Gap Inc traded more than 11% lower in pre-market trading after the company lowered its quarterly sales forecast, blaming the challenges in implementing its Old Navy brand. Gap also said that the head of the Old Navy brand, Nancy Green, is leaving the company and the company’s CEO Sonia Singal will lead the team until a deputy is appointed.
American Airlines rose 3.8 percent after announcing to investors that it expects to make a profit in the second quarter as more people return to travel.
Tesla rose 3.2 percent after the electric carmaker reported strong sales and a sevenfold increase in profits, despite the break in the global supply chain.
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Bond yields are rising as investors prepare for higher interest rates. The yield on 10-year bonds on Friday was 2.92%.
The Associated Press contributed to this report.
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