US stock index futures sank Sunday after the worst week on Wall Street since January.
Dow Jones Industrial Average futures YM00,
It is down about 300 points, or 1%, as of midnight ET, while the S&P 500 futures contract is down ES00,
and Nasdaq-100 futures NQ00,
recorded a sharper decline.
Bitcoin and other cryptocurrencies also fell over the weekendwith Bitcoin BTCUSD,
It fell below $26,000 to an 18-month low, and more than 60% from its all-time high last November. CL.1 crude oil prices,
Sunday fell as well.
Stocks closed sharply lower on Friday. The Dow DJIA,
It fell 880 points, or 2.7%, to close at 3,1392.79 points. S&P 500 SPX,
It fell 116.96 points, or 2.9%, to close at 3,900.86 points. and Nasdaq Compound,
It fell 414.20 points, or 3.5%, to close at 11,340.02 points.
Over the course of the week, the Dow was down 4.6%, the Standard & Poor’s was down 5.1% and the Nasdaq was down 5.6%. It was the biggest weekly loss since January for all three major indexes, according to market data from Dow Jones.
Markets fell after renewed inflation fears, as a new report showed warmer than expected readings. The Consumer Price Index on Friday showed US inflation rose 1% in May, well above expectations for a monthly rise of 0.7% by economists in a Wall Street Journal poll. The annual rate rose 8.6%, surpassing a 40-year high of 8.5% in March.
Federal policy makers are set to meet this weekIt is expected to raise interest rates by 50 basis points, although some economists believe that after Friday’s CPI report, Further sharp rise of 75 basis points could be supported.
“The US CPI for May was a nightmare for risk markets,” Stephen Innes, managing partner at SPI Asset Management, wrote in a note on Sunday. “The market is now thinking a lot more about the Fed raising rates sharply to beat inflation and then having to cut back as growth drops.
This will get traders and investors to “trade about how tight central banks can deliver, and therefore, how much higher returns can go from here. We all know that nothing good happens when interest rate volatility in the capital markets goes up.”