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In article <t2nbm7$3oaef$51@news.freedyn.de>
<governor.swill@gmail.com> wrote:

U.S. stock index futures fell early Wednesday after the major
averages jumped in regular trading hours, attempting to claw
back some losses following weeks of selling.

Futures contracts tied to the Dow Jones Industrial Average fell
475 points or 1.55%, while S&P 500 futures declined 1.25%.
Nasdaq 100 futures dipped 1.28%.

During regular trading Tuesday, the Dow surged 641 points, or
2.15%. The S&P 500 added 2.45%, turning in its best day since
May 4. The jump comes after the benchmark index slumped 5.79%
last week in its worst weekly performance since March 2020.

The Nasdaq Composite advanced 2.51% on Tuesday, following its
tenth week of losses in the last 11 weeks.

Growing fears that the economy will tip into a recession have
recently weighed on stocks. The Federal Reserve last week hiked
interest rates by three-quarters of a percentage point, the
central bank’s largest rate increase since 1994.

The move came as the Fed tries to cool inflation, which has
surged to a 40-year high.

“We don’t see a U.S. or global recession in ’22 or ’23 in our
base case, but it’s clear that the risks of a hard landing are
rising,” UBS said Tuesday in a note to clients.

“Even if the economy does slip into a recession, however, it
should be a shallow one given the strength of consumer and bank
balance sheets,” the firm added.

Goldman Sachs, meantime, believes a recession is becoming
increasingly likely for the U.S. economy, saying that the risks
of a recession are “higher and more front-loaded.”

“The main reasons are that our baseline growth path is now lower
and that we are increasingly concerned that the Fed will feel
compelled to respond forcefully to high headline inflation and
consumer inflation expectations if energy prices rise further,
even if activity slows sharply,” the firm said in a note to
clients.

Tuesday’s rally begs the question of whether the action is short-
term relief after weeks of selling, or a meaningful change in
sentiment. Tuesday’s strength was broad-based. All 11 S&P
sectors registered gains on the day, with energy leading the
way, climbing 5.8%.

“Our expectations are that market volatility will likely persist
near term until the actions taken by the Federal Reserve thus
far...and the actions it takes going forward have had time to
work through the system,” Oppenheimer said Tuesday in a note to
clients.

Fed Chair Jerome Powell will appear before Congress on
Wednesday, kicking off two days of testimony. On the earnings
front, KB Home will post results after the market closes on
Wednesday.

https://www.cnbc.com/2022/06/21/stock-market-futures-open-to-
close-news.html

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