Futures continue to lose money as the US economy weakens
US futures experienced a decline on Thursday, giving up some of the gains made following a significant rise the day before that was sparked by another rate hike from the Federal Reserve. Futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq all decreased by 0.2 percent, 0.3 percent, and 0.7 percent, respectively.
The S&P 500 fell 0.3 percent before the opening of trading, with US stock futures also sliding. The US gross domestic product shrank by 0.9 percent in Q2 after shrinking by 1.6 percent in Q1; this was bad news for traders. analysts say that GDP growth will be 0.4 percent. Initial claims for unemployment insurance for the week ending July 23 were 256,000, up from the previously reported revised number of 261,000 but below analyst predictions of 250,000.
The Federal Open Market Committee, which sets policy, increased the federal funds rate by 75 basis points on Wednesday following a two-day meeting, as anticipated. Following the news, major equity indices experienced significant increases.
The US and Indian stock markets have a coupling effect. For example, if US futures are down 600 points or more when Indian markets open, this would indicate that US markets will likely be down when they open in the evening India time. As a result, the Indian markets would anticipate that move and subsequently take a drop.
US futures Statistics
After official data revealed a weekly reduction in US crude stockpiles, oil prices soared, with front-month global benchmarks Brent crude and West Texas Intermediate crude both up more than 2%.
According to data, US gross domestic product shrank by 0.9 percent annually in Q2 compared to a 1.6 percent decline in Q1. According to Bloomberg data, new unemployment claims decreased from 251,000 the week before to 256,000 the week ending on July 23.
Front-month US Natural gas prices dropped 0.9 percent while West Texas Intermediate crude oil futures rose 2.4 percent. United States Natural Gas Fund (UNG) fell 1.3 percent, while the United States Oil Fund (USO) rose 1.5 percent. Silver was up 3.8 percent and gold was up about 1.1 percent; iShares Silver Trust (SLV) was up 1.6 percent and SPDR Gold Trust (GLD) was up 0.2 percent.
Since the US Fed has been generous with stimulus packages, the dollar is anticipated to decline over the next several months or years. In actuality, the FPIs’ ongoing transition to new markets is their primary motivator. They are predatory because of this.
The Fed’s actions, the continually shifting bond yield rates, the prices of gold and bonds as well as crude oil all have an impact on US markets. You should be aware that US markets have a tremendous impact on the Indian stock market. Since FPIs provide capital, our market grows. They leave, and our market declines. The South East and European exchanges also affect our market
