May 20, 2022

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Stock futures rose slightly as Wall Street awaits a Fed rate hike, developments in Ukraine

Stock futures rose slightly as Wall Street awaits a Fed rate hike, developments in Ukraine

US stock futures rose slightly on Monday night as investors continue to monitor developments in the Russia-Ukraine conflict and prepare for a major decision on federal policy.

Dow Jones Industrial Average futures rose 52 points, or 0.16%. S&P 500 and Nasdaq
The 100 futures contracts are up 0.21% and 0.30%, respectively.

Earlier today, the S&P 500 was down 0.7%, while the heavy Nasdaq Composite was down 2%. Both have finished their seventh negative session in the past eight. Meanwhile, the Dow Jones Industrial Average closed flat after rising 450 points earlier in the day.

Investors watched the ongoing conflict between Russia and Ukraine, as the two countries began a new round of ceasefire talks on Monday. A Ukrainian official said that his country demands the immediate withdrawal of Russian forces from the country.

Meanwhile, officials from the United States and China met on monday To discuss a range of challenges to their bilateral relationship, including the ongoing Russian war in Ukraine.

The financial ramifications of severe Russian sanctions will become an even more acute focus in the coming days before the scheduled sovereign bond payments are made.

“The market is nervous,” said Jane Goldman, chief investment officer at Cetera Investment Management. “A lot of concern about the Russian invasion, inflation, and the Federal Reserve. With growing fears of a bear market, investors have been volatile.”

However, he said he does not feel a bear market is in the papers, saying, “A pullback/correction becomes a bear market if a recession is likely. All the fundamental data (employment, construction spending, PMIs, etc.) support a solid economic base” .

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Investors are anticipating a rate hike from the Federal Reserve, after the central bank began a two-day session on Tuesday that will signal a tightening of monetary policy. The central bank is widely expected to raise the federal funds rate by a quarter of a percentage point from zero.

There will also be adjustments to the economic forecastexpectations for the future path of rates, and potentially a discussion about when the Federal Reserve could begin reducing its bond portfolio holdings.