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 Futures extend selloff after rough week

A Wall Street sign is pictured outside the New York Stock Exchange in the Manhattan borough of New York City, New York, U.S., April 16, 2021. REUTERS/Carlo Allegri/File Photo

Futures extend selloff after rough week

U.S. stock index futures fell on Monday, signaling a fresh round of selloff on Wall Street as fears over China’s COVID-19 outbreaks spooked investors already concerned about aggressive U.S. interest rate hikes.

Concerns around global growth reverberated across world markets, with Chinese shares marking their biggest slump since the pandemic-led selling in February 2020 and European stocks falling to their lowest in over a month on fears of strict restrictions in China.

U.S.-listed Chinese shares like JD.com Inc , Alibaba Group Holdings Ltd and Baidu Inc declined between 2.9% and 4.4% in premarket trading.

Investors were also on edge at the start of a week that will see megacap companies like Google-parent Alphabet Inc (GOOGL.O), Microsoft Corp (MSFT.O), Facebook owner Meta Platforms Inc (FB.O), Amazon.com Inc (AMZN.O) and Apple Inc (AAPL.O) publish quarterly results. Their shares fell between 0.5% and 1.0%.

Disappointing results from pandemic darling Netflix (NFLX.O) along with surging bond yields pummeled high-growth stocks last week, bringing year-to-date losses in the tech-heavy Nasdaq (.IXIC) to 17.9%. The benchmark S&P 500 (.SPX) is down 10.3% so far this year.

Traders are pricing in big moves by the Federal Reserve this year to control inflation after a series of hawkish remarks from policymakers. Fed Chair Jerome Powell last week gave a “go” sign to a half-point rate hike in May and signaled he would be open to “front-end loading” the U.S. central bank’s retreat from super-easy monetary policy. read more

Money markets expect the Fed to raise interest rates by a half point at the central bank’s next two meetings. IRPR

At 07:04 a.m. ET, Dow e-minis were down 236 points, or 0.7%, S&P 500 e-minis were down 32.5 points, or 0.76%, and Nasdaq 100 e-minis were down 101.5 points, or 0.76%.

Among other stocks, Coca-Cola Co (KO.N) slipped 1.1% even as its results beat quarterly revenue expectations. read more

Twitter Inc (TWTR.N) gained 2.1% after reports that it kicked off deal negotiations with Tesla Inc (TSLA.O) chief Elon Musk. read more

Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Maju Samuel

This article was originally published by Reuters.

Global Business Magazine

Global Business Magazine

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