Stocks are likely to move to the downside in early trading on Tuesday, giving back ground after moving mostly higher over the two previous sessions. The major index futures are currently pointing to a modestly lower open for the markets, with the S&P 500 futures down by 0.2 percent.
Concerns about the impact of additional sanctions against Russia may weigh on Wall Street, with members of the European Union under pressure to extend sanctions to Russia’s oil and coal sectors in response to alleged war crimes in Ukraine.
The price of crude oil is extending yesterday’s surge amid worries about the potential for new sanctions, leading to renewed inflation anxiety.
Trading activity may be somewhat subdued, however, as traders look ahead to the release of the minutes of the Federal Reserve’s March meeting on Wednesday.
The Fed raised interest rates for the first time since 2018 at the March meeting, and traders will be looking to the minutes for clues about the outlook for future rate hikes.
CME Group’s FedWatch tool is currently indicating a 74.4 percent chance the Fed will raise rates by 50 basis points next month.
On the U.S. economic front, a report released by the Commerce Department showed the U.S. trade deficit was nearly unchanged in February, as imports and exports both increased.
The Commerce Department said the trade deficit narrowed by less than $0.1 billion to $89.2 billion in February. Economists had expected the deficit to narrow to $88.5 billion from the $89.7 billion originally reported for the previous month.
The trade deficit was little changed as the value of imports jumped by $4.1 billion or 1.3 percent to $317.8 billion, while the value of exports surged by $4.1 billion or 1.8 percent to $228.6 billion.
Not long after the start of trading, the Institute for Supply Management is scheduled to release its report on service sector activity in the month of March.
The ISM’s services PMI is expected to rise to 58.0 in March from 56.5 in February, with a reading above 50 indicating growth in the sector.
Stocks moved mostly higher over the course of the trading day on Monday, adding to the gains posted in last Friday’s session. Tech stocks helped lead the advance, resulting in a standout gain by the Nasdaq.
The major averages all closed in positive, although the tech-heavy Nasdaq outperformed its counterparts. While the Nasdaq surged 271.05 points or 1.9 percent to 14,532.55, the S&P 500 advanced 36.78 points or 0.8 percent to 4,582.64 and the Dow rose 103.61 points or 0.3 percent to 34,921.88.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Tuesday, with several markets closed for holidays. Japan’s Nikkei 225 Index edged up by 0.2 percent, while South Korea’s Kospi inched up by 0.1 percent.
Meanwhile, the major European markets have moved to the downside on the day. While the French CAC 40 Index has tumbled by 1.4 percent, the German DAX Index is down by 0.5 percent and the U.K.’s FTSE 100 Index is down by 0.1 percent.
In commodities trading, crude oil futures are jumping $1.12 to $104.40 a barrel after spiking $4.01 to $103.28 a barrel on Monday. Meanwhile, after rising $10.30 to $1,934 an ounce in the previous session, gold futures are edging down $0.70 to $1,933.30 an ounce.
On the currency front, the U.S. dollar is trading at 122.96 yen compared to the 122.79 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0957 compared to yesterday’s $1.0972.
Business News
U.S. Stocks May Give Back Ground In Early Trading
2022-04-05 12:50:28
