Due to rising concerns and worry about the probability of higher interest rates, the market situation has been on the edge over the past week.
The U.S stock index futures dipped in advance of Tuesday’s open and dropped from the gains it had posted in the previous trading session. Last week was marked as one of the most volatile weeks in the history of stock market.
Dow futures dropped 93 points at around 8.am and hinting toward a dip of 79 points at the open. Both S&P 500 and Nasdaq futures indicated a negative beginning to the Tuesday’s trade.
The moves witnessed in the U.S futures are the result of a solid end Monday when the Dow Jones Industrial average was able to close up over 400 points. On the other hand, Nasdaq composite and S&P 500 also increased.
Due to possibility of increased interest rates, the markets have been on the edge over the past week. Last Friday, trade closed higher and all of the three major indexes closed the week over 5% down. Dow delivered its worst performance since January 2016. As a result, the investors have their eyes on the bond market regarding interest rates with the yields dipping during the morning trade, Tuesday.
The Cleveland Federal Reserve President Loretta Mester is likely to remark on the monetary policy and its outlook in Dayton, Ohio at the Dayton Area Chamber of Commerce’s government affairs breakfast.
U.S President Donald Trump revealed the latest budget of the country on Monday and the White House called for $3 trillion in the deficit reduction that shall also include $1.7 trillion in the compulsory spending cuts and at the same time proposing to cut the discretionary spending by 2% a year after 2019.
The programs calls for removal of programs like Medicare along with an increase in the military funding and spending for the wall proposed by Trump along the Mexican border. The decision lies with Congress and it will decide in the end when it comes to settling upon the spending levels of the state.