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U.S. stock futures fell on Tuesday, retreating further from record highs as uncertainty over interest rate cuts and strength in tech stocks spooked the market.
S&P 500 (^GSPC) futures are down 0.3% and Dow Jones Industrial Average (^DJI) futures are down 0.2% since the start of the week. Continued declines in Apple (AAPL) and Tesla (TSLA) pushed the tech-heavy Nasdaq 100 (^NDX) contract down by 0.6%.
What is currently being debated is whether the tech profits behind recent record stock price gains have peaked. This comes as bad economic news dampens the “FOMO” (fear of missing out) that is seen as keeping investors interested.
In pre-market trading, Apple came under pressure after reports that iPhone sales in China had fallen 24%, and losses widened on Monday after a $2 billion EU antitrust fine. . Tesla’s sales continued to slump due to sluggish shipments due to the closure of its Gigafactory in Berlin and growing concerns about price competition in China.
At the same time, confidence in the Fed’s future easing has been shaken following comments from policymaker Rafael Bostic. The Atlanta Fed president said there will be only one rate cut this year, scheduled for the third quarter.
Investors are now paying more attention to Fed Chairman Jerome Powell’s testimony to Congress on Wednesday. His words will be closely watched for any change in the belief that policymakers need to be confident that inflation will be overcome before taking action.
Meanwhile, Bitcoin (BTC-USD) briefly reached $68,000 overnight, but stalled amid a cautious mood and is now trading around $67,130. The largest cryptocurrency is just a few steps away from hitting an all-time high above $68,789.
In the corporate sector, Target (TGT)’s earnings beat Wall Street expectations, sending its stock up 8% premarket.
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