HomeFinancial MarketsU.S. Futures Decline Following Fed Update

U.S. Futures Decline Following Fed Update

Futures on the New York Stock Exchange retreated on Tuesday following comments indicating that the Federal Reserve may be inclined to keep interest rates higher for longer. Fed policymaker Neel Kashkari revealed that while the US economy is showing signs of easing inflation, the central bank will probably need to maintain its tight fiscal policy to complete its fight against inflation.

Contracts listed on the Dow Jones Stock Exchange fell by 0.4%, while futures on the S&P 500 and the tech-heavy Nasdaq Composite slumped by 0.5% each. In response to the latest Fed update, the 10-year Treasury Yield remained near its highest level since 2007, while the dollar reached a 10-year peak.

In an effort to gain further insight into the Fed’s potential monetary pathway, investors will await Thursday’s update on second-quarter GDP as well as Friday’s reading on PCE inflation; the Federal Reserve’s preferred inflation gauge.

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