U.S. stock index futures show weakness due to concerns about the situation in the Middle East and interest rate movements
On Monday evening, S&P 500 futures closed at 5,104 points, Nasdaq 100 futures closed at 17,878.5 points, and Dow Jones futures closed at 38,000 points, all of which remained relatively stable.
U.S. stock index futures traded smoothly late Monday, extending Wall Street's downtrend, with risk appetite remaining fragile due to tensions in the Middle East and rising long-term interest rates.
Israel has said it is ready to retaliate against Iran's massive missile and drone strikes over the weekend. While the Iranian attack caused little damage, it raised the possibility of a larger conflict in the Middle East, causing traders to focus on safe-haven assets such as gold.
According to retail sales data, U.S. consumer spending is higher than expected, maintaining strong growth, which is expected to support inflation in the coming months and keep interest rates high. U.S. Treasury yields rise after this data release, weighing on stocks.
As of 19: 11 ET (23: 11 GMT), S&P 500 futures were at 5,104 and Nasdaq 100 futures were at 17,878.5, Dow Jones futures at 38,000, both largely steady.
Wall Street extends last week's losses。Wall Street indexes fell sharply on Monday, extending last week's downtrend, with plenty of bad signs prompting investors to lock in profits from a strong first-quarter rally.
While there were some exceptions, the first quarter's earnings season got off to a lackluster start, with negative data from many of the big banks a cause for concern.Head tech stocks continue to be weak, with concerns that their earnings won't be able to sustain a valuation bubble in the first quarter.
On Monday, the S&P 500 fell 1.2% at 5,061.82, Nasdaq composite down 1.8% at 15,885.02, Dow Jones industrial average down 0.7%, at 37,735.11.
Johnson&Johnson, United Health, Bank of America and Morgan Stanley to report quarterly earnings on Tuesday.
Bank of America and Morgan Stanley earnings will be closely watched after most of their peers posted poor first-quarter results.
Goldman Sachs bucked the trend as its investment banking unit performed strongly, beating Wall Street expectations. On Monday, the stock rose 2.9%, after-hours trading flat.
Later Tuesday, several Fed members will also speak, particularly as Chairman Powell is expected to provide more guidance on interest rates. In addition, Powell plans to meet with the governor of the Bank of Canada.
Given the growing evidence that US inflation will remain at a high level in the coming months, this gives the central bank more incentive to keep interest rates at a high level. June rate cut less likely.
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