Futures slump as recession fears loom

U.S. stock index futures

NASDAQ 100 is trading up 2.49% at 11593.77

U.S. stock index futures fell sharply on Thursday, pointing to a reversal of the previous session’s rally, as fears of a recession grew after the Federal Reserve’s biggest rate hike in nearly three decades.

Rate-sensitive growth stocks took the biggest beating, with Nasdaq 100 futures slumping about 3%.

The Fed on Wednesday matched market expectations by hiking interest rates by 75 basis points. It also projected a slowing economy and rising unemployment in the coming months in the face of worst inflation in 40 years, raising risk of a downgrade to U.S. corporate profit in third and fourth quarter.

Post Fed meeting Wells Fargo (NYSE:WFC) said the odds of a recession now stand at more than 50%.

With inflation hitting double digits, central banks globally are adopting an aggressive stance to tame soaring prices.

The Swiss National Bank raised its policy interest rate for the first time in 15 years in a surprise move on Thursday, while the Bank of England looked set to raise borrowing costs later in the day.

On technical fronts NASDAQ 100 RSI stood at 18.87 and currently it is trading below all MA. So, SELL position can be taken with following target and stoploss:

TRADE SIGNAL – : NASDAQ 100 – SELL: 11302.34, TARGET: 11263 .16, STOP LOSS: 11342.04

About Author

Related posts

U.S. stock index futures

Futures edge lower as investors await Fed meeting minutes

S&P 500 is trading up 0.16% at 3831.38 U.S. stock index futures edged lower on Wednesday as investors worried about the possibility of a recession from aggressive policy tightening awaited minutes from the Federal Reserve’s meeting last month. Stock markets have been roiled in recent weeks as central banks...

Read More
Dollar Index

Dollar Edges Lower; RBA Hikes Interest Rate

AUD/USDis trading down 1.12% at 0.6782 The U.S. dollar edged lower in early European trade Tuesday, while the Australian dollar dipped despite the country’s Reserve Bank announcing a half-point rate hike. At 3 AM ET (0700 GMT), the Dollar Index, which tracks the greenback against a basket of six...

Read More
European stock markets

European Stocks Largely Higher; DAX Underperforms After Trade Deficit 

FTSE 100 is trading up 0.65% at 7196.67 European stock markets edged largely higher Monday, starting the new week on a positive note despite the Wall Street holiday limiting activity. By 03:40 AM ET (0740 GMT), the DAX in Germany traded 0.1% lower, while the CAC 40 in France...

Read More

Leave a Reply