Meanwhile, Russia continued its bombardment of Ukrainian cities as it fired missiles at an airport near Lviv on Friday, while there was little sign of a breakthrough in peace talks.

US stock indices futures fell Friday at the end of a tumultuous week marked by the Federal Reserve’s hike in interest rates and no sign of an end to the war in Ukraine.

The broad declines could spark a three-day rally that had put the S&P 500 index and the Dow Jones Industrial Average on track for their best week since November 2020.

US President Joe Biden was said to speak by telephone with Chinese President Xi Jinping at 9 a.m. Dutch time (1300 GMT), warning that Beijing will pay a price if it supports Russian military operations in Ukraine.

Meanwhile, Russia continued its bombardment of Ukrainian cities as it fired missiles at an airport near Lviv on Friday, while there was little sign of a breakthrough in peace talks.

Markets processed news of the conflict and the Fed’s expected move to raise key lending rates by a quarter of a percentage point on Wednesday. The US central bank also forecast an aggressive plan for further hikes, as policymakers revised forecasts for economic growth for the year.

“We prefer a hedging strategy and selective equity exposure to exiting risky assets,” said Mark Haefele, chief investment officer at UBS Global Wealth Management in a client note.

“Energy stocks offer a hedge against risks arising from the war in Ukraine, while financials and value stocks tend to outperform during periods of rising interest rates.”
At 6:45 a.m. ET, the Dow e-minis were down 189 points or 0.55%, the S&P 500 e-minis were down 29.5 points, or 0.67%, and the Nasdaq 100 e-minis were down by 100 points or 0.71%.

Shares of Boeing Co. rose 0.4% as it secured a milestone order from Delta Air Lines for up to 100 of its 737 MAX 10 jets, people familiar with the matter said.

US delivery company FedEx Corp fell 3.1% as it posted lower-than-expected quarterly results on Thursday, while video game retailer GameStop Corp lost 8.3% in reporting a net loss for the fourth quarter.

The day also marks “triple witching,” where investors settle positions in futures and options contracts before they expire, often leading to large unexpected moves in the markets.


This post US equities: futures fall as three-day rally cools was original published at “https://www.financialexpress.com/market/us-stocks-futures-dip-as-three-day-rally-cools/2464944/”

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