Stock futures drop after Fed says economy has slowed over the summer
US equity futures traded lower early Thursday, adding to the recent drop after the Federal Reserve signaled a slowdown in the US economy over the summer.
The major futures indices have suggested a drop of 0.4% when Wall Street trading begins for the day.
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The Federal Reserve’s latest survey of the country’s economic conditions, dubbed the “Beige Book,” said US economic activity “slowed” in July and August.
The Fed said the slowdown was largely due to a decline in restaurants, travel and tourism in most parts of the country, reflecting concerns about the spread of the highly contagious delta variant of the coronavirus.
The latest beige book will be used by Fed policymakers at their next meeting on September 21-22 to help them decide how to change interest rates and whether to end monthly purchases of $ 120 billion bonds. dollars that the central bank has made since the start of the pandemic, to help lower long-term interest rates.
AMERICAN ECONOMIC GROWTH SLOWED THIS SUMMER AS THE DELTA VARIANT HAMMERED DEMAND, SAYS THE FED’S BEIGE BOOKS
New economic data will be released ahead of the opening bell.
The Ministry of Labor will publish its tally of new unemployment benefit claims for the past week. Expectations are 335,000, a slight drop of 5,000 from the previous week’s total of 340,000 which would be the lowest since March 14, 2020. Continuing claims, which track the total number of unemployed receiving benefits, are expected to drop from 4,000 to a pandemic low of 2.744 million.
In Europe, London’s FTSE fell 1.2%, Germany’s DAX fell 0.9%, and France’s CAC also fell 0.9%.
In Asia, the Tokyo Nikkei 225 fell 0.6%, the Hang Seng fell 2.2% and the Chinese Shanghai Composite index edged up 0.5%.
|Me: DJI||MEDIUM DOW JONES||35031.07||-68.93||-0.20%|
|I: COMP||NASDAQ COMPOSITE INDEX||15286.637384||-87.69||-0.57%|
On Wall Street, the S&P 500 slipped 0.1% to 4,514.07, its third consecutive decline.
The Dow Jones Industrial Average fell 0.2% to 35,031.07 and the Nasdaq composite slipped 0.6% to 2,249.73. The drop in the tech index ended a four-day winning streak.
U.S. employers posted record jobs for the second consecutive month in July, according to the Labor Department.
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In other exchanges, benchmark US crude oil fell 4 cents to $ 69.26 per barrel in electronic trading on the New York Mercantile Exchange. It gained 95 cents on Wednesday, at $ 69.30 a barrel.
Brent crude, the international benchmark for price, rose 3 cents to $ 72.63 a barrel.
The Associated Press contributed to this report.