Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
News
All NewsCompaniesIndexesCurrency / ForexCommoditiesCryptocurrenciesETFInterest RatesEconomyThemesSectors 

Futures edge up ahead of jobs data, recession fears loom

12/08/2022 | 07:06am EST
Traders work on the floor of the NYSE in New York

(Reuters) - U.S. stock index futures edged up on Thursday ahead of weekly jobless claims data, while fears of an impending recession brought on by an aggressive Federal Reserve kept investors on edge.

The Labor Department's report at 8:30 a.m. ET is likely to show a marginal uptick in the initial claims for state unemployment benefits to 230,000 for the week ended Dec. 3.

Last Friday, data showed U.S. employers hired more workers than expected in November and increased wages, spurring fears that the Federal Reserve might stick to a longer rate-hike cycle as it attempts to tame inflation.

Further, producer price index and the University of Michigan's consumer sentiment survey on Friday and November's consumer price data next week will also be in focus for more clues on the Fed's policy decision on Dec. 14.

Investors see a 93% chance that the U.S. central bank will hike the key benchmark rate by 50 basis points to 4.25%-4.50%, with the rates peaking in May 2023 at 4.93%.

The U.S. central bank has raised its policy rate by 375 basis points this year to a 3.75%-4.00% range from near zero, the fastest rate hikes since the 1980s.

This aggressive approach by the central bank has stoked worries of a recession, with top executives of major U.S. banks and institutions including JPMorgan, BlackRock and Citi forecasting a likely economic downturn in 2023.

The benchmark S&P 500 fell for five consecutive sessions on Wednesday, losing 3.6%, while the Nasdaq has shed 4.5% in four straight sessions.

Inversion of the yield curve between the 2-year and 10-year treasury notes has been widening recently, which is often viewed as an indicator of an impending recession.

"The yield curve is hideously inverted, recession is coming, and stock markets usually bottom only after a recession has started," said Luke Templeman, thematic research analyst at Deutsche Bank.

"But when the outlook is overwhelmingly negative, and no one is positioned for good news, markets can bounce on any unexpected positives that do arise."

At 6:05 a.m. ET, Dow e-minis were up 6 points, or 0.02%, S&P 500 e-minis were up 5.25 points, or 0.13%, and Nasdaq 100 e-minis were up 28 points, or 0.24%.

Most mega-cap technology and growth stocks such as Alphabet Inc, Apple Inc, Microsoft Corp, Tesla Inc and Meta Platforms Inc edged higher in premarket trading.

Salesforce Inc slipped 1.4% after Baird downgraded the software firm's stock to "neutral", while Rent the Runway Inc jumped 15.4% after the clothing rental firm raised its 2022 revenue forecast, signaling strong demand.

(Reporting by Shubham Batra in Bengaluru; Editing by Vinay Dwivedi)


ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET INC. -1.79% 102.9 Delayed Quote.18.76%
APPLE INC. -1.79% 151.73 Delayed Quote.16.78%
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) 0.56% 0.69289 Delayed Quote.1.54%
BLACKROCK, INC. -1.95% 742.38 Delayed Quote.6.85%
BRITISH POUND / US DOLLAR (GBP/USD) -0.05% 1.20219 Delayed Quote.-0.43%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) 0.17% 0.74465 Delayed Quote.1.04%
DEUTSCHE BANK AG 0.81% 11.448 Delayed Quote.7.25%
EURO / US DOLLAR (EUR/USD) -0.07% 1.07217 Delayed Quote.0.81%
INDIAN RUPEE / US DOLLAR (INR/USD) -0.01% 0.012086 Delayed Quote.0.62%
META PLATFORMS, INC. -0.25% 186.06 Delayed Quote.54.61%
MICROSOFT CORPORATION -0.61% 256.77 Delayed Quote.7.07%
NASDAQ 100 -0.87% 12464.51 Real-time Quote.14.93%
NASDAQ COMPOSITE -1.00% 11887.45 Real-time Quote.14.72%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) 0.15% 0.6317 Delayed Quote.-0.36%
SALESFORCE.COM, INC. -1.16% 169.05 Delayed Quote.27.50%
TESLA, INC. 2.52% 194.76 Delayed Quote.58.11%
Latest news "Economy"
03:13aWorld health organization director-general: we are especially co…
RE
03:12aThree drown, dozens feared missing in migrant shipwreck off Greece
RE
03:12aToshiba's bidder JIP set to win commitments for $10.6 billion loan- Bloomberg News
RE
03:06aThird wave of strikes over pension reform keeps pressure on Macron
RE
03:02aThai PM sees over 30 million foreign tourists this year - spokesperson
RE
03:01aFTSE 100 to Edge Higher Despite Mixed Asia Trading, Weaker U.S. Close
DJ
03:00aInvestors pulled $1 bln from UK equity funds in January - Calastone
RE
02:57aIndonesia's Pertamina targets 5% increase in 2023 oil and gas lifting
RE
02:52aDenmark suspends reviewing wind power projects over possible EU law conflict
RE
02:47aIndia's ONGC to explore investing in Argentina gas assets
RE
Latest news "Economy"