US Stocks Open Reduced Amid Trouble about Big Tech
U.S. stocks were expected to open lower, Against the backdrop of disturbing news from technology companies, including Apple and Amazon, hinting that supply chain and price pressures could affect corporate profits. News of the slowdown in economic growth in the world’s largest economy has added to frustration amid fears that the broader economy will suffer. The U.S. will start a series of interest rate hikes.
Dow Jones Industrial Average futures fell 0.3% in pre-market trading, While the broader S&P 500 index was 0.6% lower. Nasdaq 100 contracts lost 0.9%. Overall, the markets appear to be fragile, Given the number of factors that amplify uncertainty. Analysts estimate that markets are battling inflation, wars, slowdowns, economic overheating, energy shortages, supply chain disruptions, and monetary policy movements.
Amazon revenue was disappointing. It struggled with supply and price pressures. Its warning hampered Apple’s spectacular results that revenue could be affected by supply chain problems. Shares of Amazon were down about 8% in after-hours trading.
U.S. first-quarter GDP data released on Thursday showed a 1.4% contraction; This serves as a warning that economic growth is slowing ahead of expected interest rates set by the Federal Open Market Committee.
Stocks and Risks
The key is that the data will not deter the FOMC from raising interest rates by 0.50% next week. All three have upward risks. The firm data will be further ammunition for the hawk FOMC next week. Strict COVID-19 measures in China and further closure in the most populous country in the world; also worries markets and increase fears of supply chain restrictions. The ongoing war in Ukraine is a primary focus for investors.
Elsewhere the price of oil was slightly higher. Brent oil futures rose 1.65% to $109.03 a barrel. The WTI was up 1.33% at $106.76 a barrel. The ban on European oil imports to Russia appears to be approaching an increase in oil prices.
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