Dow futures jump more than 300 points, signaling a wall street tribune | RYT9

Dow futures jumped more than 300 points today, indicating that Wall Street will bounce higher tonight. After falling heavily yesterday Amid concerns that China’s default on debt Evergrande Group, China’s second-largest real estate company, will have an impact on the global economy.

At 5:29 p.m. Thai time, the Dow Jones Industrial Average gained 317 points, or 0.94%, to 34,156 points.

The Dow closed down 1.8 percent last night, its biggest drop since July 19, while the S&P 500 fell 1.7 percent, its biggest decline since May 12. Nasdaq minus 2.2%

Shares benefiting from the economic recovery have all rebounded in pre-market trading today.

Although Wall Street is likely to recover today. But analysts warn that Stock markets remain at risk of facing correction on a number of factors, including the default of Evergrand’s debt, the US Federal Reserve’s potential to cut its bond-buying program in line with easing measures. Quantitative (QE) at this month’s meeting, whether Congress may approve corporate income tax hikes, concerns about the US government’s debt ceiling. including the risk of the spread of the COVID-19 virus Delta species

Investors will keep an eye on the Fed’s monetary policy meeting today and tomorrow. Amid concerns the Fed may signal a cut in QE at this meeting

Fed Chairman Jerome Powell signaled earlier that The Fed is likely to begin cutting its QE limit before the end of the year.

Mr Powell said The US economy has reached a point where there is no longer the need for substantial support from the Fed. This means the Fed is likely to cut its QE limit before the end of the year. As long as the economy continues to expand

Former New York Fed Chairman William Dudley said global stock markets slumped yesterday. Amid concerns about Evergrande’s default It won’t cause the Fed to change its decision on its QE limit cut plan.

“The Fed will not react slightly to market movements. And the Fed will not postpone its QE cut plan,” Dudley said. The Fed will cut QE at its November meeting.