Dow futures fell more than 100 points today, indicating Wall Street will be lower tonight. amid concerns that Rising inflation in the US will pressure the Federal Reserve (Fed) to accelerate interest rate hikes.
Markets were also pressured as the 10-year US Treasury yield held above 1.77% today.
At 8:01 p.m. Thai time, the Dow Jones Industrial Average dropped 109 points or 0.3% to 35,998 points.
All three Wall Street indices fell last week. The Dow was down 0.3%, the S&P 500 was down 1.9 percent and the Nasdaq was down 4.5%.
Investors are keeping an eye on US inflation numbers on Wednesday. This will be a factor in the direction of the Fed’s policy interest rate.
Analysts predict that The US Department of Labor will reveal that The Consumer Price Index (CPI), which measures inflation from consumer spending, jumped 7.1 percent in December from a year earlier than 6.8 percent in November.
The core CPI, excluding food and energy, is expected to jump 5.4 percent in December from a year-on-year increase of 4.9 percent in November.
The CME Group’s FedWatch Tool indicates that investors are weighing more than 90 percent that the Fed will raise interest rates by 0.25% at its March monetary policy meeting. This was the month when the Fed ended its quantitative easing (QE) bond-buying program.
Goldman Sachs forecasts the Fed will raise interest rates four times this year and will begin cutting its balance sheet in July or sooner.
Investors will also be keeping an eye on Fed Chairman Jerome Powell’s statement to the Senate Banking Committee tomorrow. This could indicate a trend in the Fed’s monetary policy.
The Senate is expected to endorse Powell’s appointment as Fed chairman for a second term, although some senators have objected.
Ms Elizabeth Warren, Senator of Massachusetts attacked Mr Powell earlier. It said Mr Powell was a dangerous person who undermined the US banking system. and he will prevent Mr Powell from being reappointed as Fed chairman.
“Your work history worries me a lot. by many times in the past You have made our banking system less secure. You are a dangerous person who takes the reins of the Fed. And this is my reason for opposing your next term in office,” Ms Warren said.
Meanwhile, the market is keeping an eye on the earnings release of listed companies this week. Big banks such as JPMorgan Chase, Citigroup and Wells Fargo will release their results on Friday.