The U.S. stock markets’ main indexes were set for a lower open on Friday as investors fretted over the prospect of an economic downturn and a hit to corporate earnings amidst 40-year-high inflation, recession, and the U.S. Federal Reserve’s aggressive interest rate hikes.
The U.S. central bank raised rates by a widely expected 75 basis points on Wednesday and signaled a longer trajectory for policy rates, dashing hopes that the Fed expects to get inflation under control in the near term.
The Dow is 1.43% away from its mid-June lows, with futures suggesting the blue-chip index might retest that level, its weakest point for the year, if losses extend after market open. The S&P 500 and the Nasdaq indexes are already in bear market and down more than 21% and 29%, respectively, so far this year…
Technology and growth stocks were among the biggest decliners in premarket trading, with megacap names including Alphabet Inc, Apple Inc, Amazon.com, Microsoft Corp, and Tesla Inc all down more than 1% as benchmark Treasury yields were at an 11-year high.
MacDailyNews Take: For new generations, sometimes tough lessons have to be retaught and learned the hard way. As we go through this, remember: It’s always darkest before the dawn.
• ‘Tis best to get a handle on inflation, if you know how, while you still can. – MacDailyNews, May 11, 2021
• Stop the misguided crusade against domestic energy production and profligate federal spending and inflation will be stopped dead in its tracks. It’s not difficult. – MacDailyNews, May 11, 2022
• When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill… [which] comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident. — Ronald Reagan
• Inflation is repudiation. — Calvin Coolidge
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!