5 things to know before the stock market opens on Friday 17th June

Here are the top news, trends and analysis that investors need to start their trading day:

1. Wall Street is bracing for a bounce but still following a bad week

Traders on the floor of the New York Stock Exchange, June 16, 2022.

Source: NYSE

US stock futures Friday indicated a strong open on Wall Street. But if those gains continue, they will do little to make an impact in this week’s selling outburst. On Thursday, the Dow Jones Industrial Average fell 741 points, or 2.4%, less than 30000 For the first time since January 2021. The average of 30 stocks closed nearly 1% above the bear market threshold, down 20% or more from its previous record high in early January. The Standard & Poor’s 500 and the Nasdaq They fell 3.3% and 4%, respectively, and both sank further into bear markets. Markets rebounded on Wednesday after the Federal Reserve announced its biggest rate hike since 1994 but reversed those gains and some on Thursday.

  • On Friday, Federal Reserve Chairman Jerome Powell He renewed the central bank’s commitment to reduce inflation. In statements to the conference Regarding the US dollar, Powell stressed that the Fed is “very focused on getting inflation back to our 2 per cent target”.

2. The S&P 500 is on its way to its worst week since the monthly pandemic was declared

Heading into Friday’s open, the Dow is down 4.7% for the week, on track to post its worst weekly loss since October 2020. The S&P 500 is down 6% for the week, on track for its worst week since March 2020, the month it announced. World Health Organization Covid pandemic. The Nasdaq is down more than 6% for the week – but the tech-heavy index has been doing so poorly lately that such a drop would be its worst week since late January 2022. The scale of this week’s losses so far is even steeper, because Wednesday’s session was so strong After the Federal Reserve intensified its fight against inflation by raising the interest rate by 75 basis points.

3. The 10-year Treasury yield has fallen off this week’s highs in 2011

Bond yield declines lent support to stocks the Friday before Friday, with the 10-year Treasury yield falling to 3.2%. Yields and stocks have been largely going in opposite directions in this year’s rout. But even Thursday’s big drop in the 10-year yield from its 2011 highs earlier in the week was able to halt the selling of shares. Investors are becoming more concerned that the Fed has lagged far behind in tightening its inflation-busting policy, and that its aggressive efforts to catch up with the recession will push the economy into recession.

4. Another sign of slowing manufacturing activity is expected

A day after the latest Philadelphia Fed industrial index recorded an unexpectedly negative reading, another major indicator Factory activity Out at 9:15 a.m. ET. Industrial production numbers for May are expected to rise 0.4% after April’s 1.1% increase. Capacity utilization, a measure of how fully companies are using their resources, is expected to rise slightly to 79.2%. Manufacturing, which accounts for 12% of the economy, is facing challenges from supply chain bottlenecks due to Russia’s invasion of Ukraine China has zero tolerance Corona virus disease The policy that resulted in virus mitigation measures and lockdowns in that country’s largest city.

5. Musk addresses Twitter employees about trying to buy a company

Elon Musk directed Twitter first employee Thursday, suggestion The company will need to cut staff but provide few other new details about its $44 billion takeover offer. Musk appeared on a video call in what turned out to be a free question-and-answer session moderated by a Twitter executive. CEO Tesla And SpaceX, Musk hopes for the existence of extraterrestrials and other space civilizations. He also expressed his opinion that Twitter should help “civilization and consciousness”. Last week, the Twitter owner warned that he might walk away from his offer, if the company fails to provide more data about spam and fake accounts.

– CNBC channel Samantha SobinAnd the Jesse PoundAnd the Jeff Cox And the Peppa Stevens As well as Reuters contributed to this report.

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