U.S. Stock Futures Are Lower As Global Markets Continue to Sell Off From Last Week
U.S. stock futures are lower: Global markets continue to sell off from last week. Ongoing lockdowns in China, Fed’s potentially aggressive rate hikes, and persistent inflationary issues are the primary reasons for this pull back. The Fed is poised to increase rates as stated by Powell’s speech last week and investors are expecting a 50-basis point increase. Various economic reports are due this week including durable goods order, 1Q GDP, Employment Cost Index, and a series of intermediate treasury auctions. Treasury yields have stabilized this morning with the 10y yields trading lower. International energy prices are lower as lockdowns in China may curtail global demand. Earnings season continue with a major tech company reporting this week and so far, roughly 20% of the companies within the S&P have reported results and according to FactSet, earnings are expected to increase roughly 6.6% annually. European markets are trading down and Asian markets closed lower.