Dow Futures Fall 15 Pts; Subdued End to August
31 Aug 2022
DOW JONES is trading up 0.13% at 31831.00
U.S. stocks are seen opening in a subdued fashion Wednesday on the last trading day of the month, stabilizing after the recent selloff on concerns that continued interest rate increases will severely stifle economic growth.
At 07:00 ET (11:00 GMT), the Dow Futures contract was down just 15 points, or less than 0.1%, S&P 500 Futures traded 10 points, or 0.3%, higher and Nasdaq 100 Futures climbed 90 points, or 0.7%.
The main Wall Street indices closed sharply lower Tuesday, falling for the third consecutive session and on course to end the month with losses, as investors fretted that the Federal Reserve will remain aggressive in attempting to rein in inflation, at the likely expense of economic growth.
The Dow Jones Industrial Average dropped over 300 points, or 1%, while the S&P 500 and the Nasdaq Composite both closed 1.1% lower.
This bout of stock market weakness followed hawkish comments from Fed chief Jerome Powell at Friday’s Jackson Hole symposium, and central bank officials have been keen to continue spreading the message that further tightening is necessary.
The Fed has already raised its benchmark rate by 225 basis points since March, and is expected to hike by 75 basis points for the third successive meeting in September.
The economic data slate is largely empty Wednesday, with only the new ADP private payrolls survey to consider, but the difficulties the world’s major central banks are having with inflation was illustrated earlier in the session by Eurozone inflation rising to a new record level in August.
The bloc’s closely-watched consumer price index jumped to an all-time peak of 9.1% on an annual basis, topping the previous high of 8.9% registered in July.
On technical fronts DOW JONES: RSI stood at 16.12 and currently it is trading below all MA. So, SELL position can be taken with following target and stoploss: