U.S. futures fluctuate amid caution over economy
BNN Bloomberg
US stock-index futures were whipsawed and the dollar rose as investors fretted over signs of a sharp economic slowdown even as the Federal Reserve stays on the path of monetary tightening.
Contracts on the S&P 500 and Nasdaq 100 indexes were little changed in the course of a volatile session after the equity benchmarks advanced on Monday. Crude oil retreated amid economic headwinds that clouded the demand outlook and prospects for an increase in supply. The greenback settled higher after fluctuating between gains and losses. Chinese stocks listed in the US declined in premarket trading.
A sharp drop in New York state manufacturing, the second-worst reading since 2001, along with the longest streak of declines since 2007 in homebuilder sentiment, sparked short-lived optimism in the equity markets that the Fed may slow interest-rate hikes. However, it was soon outweighed by fears of a recession and belief among some traders that the Fed could still press ahead with its tightening irrespective of a slowdown.
“The lack of clear direction is driving the markets up and down,” Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, wrote in a note. “Yesterday’s data softens the case for the continuation of the steep recovery, and throws the foundation of a period of consolidation, and perhaps a downside correction.”
