Powell's speech, Netflix, Tesla earnings - what's moving markets
Investing.com — Fed chair Jerome Powell is set to speak later in the session, while Wall Street indices are set to open lower after bond yields rose to record levels.The earnings season continues in full flow, with Netflix and Tesla in the spotlight after releasing results after Wednesday's close.
Jerome Powell is set to hold the spotlight Thursday, as the Federal Reserve chairman speaks at the Economic Club of New York later in the session, with markets nervous that he may strike a hawkish tone after a series of U.S. data pointed to strength in the economy.
Fed policy makers have recently signaled that the central bank may be close to ending its rate-hiking cycle, as rising yields have done some of their job in cooling the economy by reining in credit.
However, recent data has indicated that the labor market remains strong and inflation sticky, and this prompted New York Federal Reserve president John Williams to take a more hawkish stance, stating Wednesday that the Fed will likely keep rates higher for longer for “some time” to rein in inflation toward its 2% target.
The benchmark 10-year Treasury yield surged on Wednesday, trading past 4.9% for the first time since 2007.
Another pause on rate hikes for November is nearly fully priced in, according to Investing’s Fed Rate Monitor Tool, but the odds of a December rate hike have jumped to 40% this week from 26% last week.
U.S. stock futures traded lower Thursday, continuing the previous session’s weakness as rising bond yields prompted investors to exit more risky assets.
At 04:50 ET (08:50 GMT), the Dow futures contract dropped 100 points or 0.3%, S&P 500 futures fell by 13 points or 0.3%, and Nasdaq 100 futures dropped by 34 points or 0.2%.
The major indices closed
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