November 28, 2022

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Stock futures drop after market rally on Wednesday

Stock futures drop after market rally on Wednesday

Stock futures fell on Thursday, putting the major averages on track to give up some of the sharp gains seen in the previous session.

Futures linked to the Dow Jones Index were down 181 points, or 0.7%, while the S&P 500 and Nasdaq 100 futures were down 0.7% and 0.9%, respectively.

The moves came on the heels of a broad rally in stocks the previous day, such as Bank England said it would buy bonds in an effort to help stabilize its financial markets and the British pound. The pound sterling fell to Record lows against the US dollar in the last days.

It was a stark departure from the violent tightening campaign many global central banks have taken to deal with rising inflation.

On Wednesday, the Dow Jones rose 1.9%, while the S&P 500 rose nearly 2% after the hit. New bear market decline Tuesday. Both indices cut six-day loss streaks.

Stocks also rose and The Bank of England participated in its plan to buy bondsThe yield on the benchmark 10-year Treasury has fallen the most since 2020 after briefly rising to 4%.

“If the market has a negative signal today, rather than a positive one, it wouldn’t surprise me,” said Liz Ann Saunders, chief investment strategist at Charles Schwab. “The market is going to do what it’s doing on any given day. You can try to point out what might be behind it, but that’s just a parlor game. A lot of it is that the market got really oversold and the buyers went up in.”

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Wednesday’s rally put the major averages on course for small gains for the week, but they are still on track to end their worst month since June. The Nasdaq Composite is leading the monthly losses, down about 6.5%, while the Dow and S&P are closing down 5.8% and 5.9%, respectively.

On a quarterly basis, the Nasdaq is on track to break a streak of consecutive quarterly losses, while the Dow is heading for a third consecutive quarterly loss for the first time since the third quarter of 2015. The S&P is on its way to its third negative. quarter in a row for the first time since its negative six-quarter streak that ended the first quarter of 2009.