Here are the most important news, trends and analysis that investors need to start their trading day:
1. Stock futures fall as Dow has accumulated a 3-day winning streak
A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, USA, March 8, 2022.
Brendan McDermid | Reuters
US stock futures fell slightly on Thursday morning, a day after a whiplash session on Wall Street as traders digested the Federal Reserve’s moves. Dow futures implied an opening drop of around 115 points on Thursday. Futures linked to the S&P 500 and Nasdaq are also in red.
Following the strong rally on Wednesday, the major US equity indices are well on their way to their best weekly performance of the year. The Dow closed up 519 points, or 1.55%, shaking off an intraday move into negative territory as investors worked out the Fed’s political outlook. The 30-stock average is riding a streak of three consecutive wins. days for the first time since the beginning of February. The S&P 500 and Nasdaq Composite had consecutive positive days for the first time this month.
On Thursday before the bell, the Department of Labor reported that initial jobless claims fell to 214,000 for the week ending March 12, lower than the Dow Jones estimate of 220,000 and a sign that the U.S. labor market it was shrinking further.
2. The Fed raises rates, expects another six hikes in 2022
The Federal Reserve Building in Washington, Jan.26, 2022.
Joshua Roberts | Reuters
The Federal Reserve raised interest rates by a quarter of a percentage point on Wednesday, its first hike since December 2018, as the U.S. central bank seeks to reduce historically high inflation. The Fed’s decision-making arm has indicated that it sees further rate hikes in the remaining six meetings in 2022. This suggests a consensus funds rate by the end of the year of 1.9%. It may also start cutting its balance sheet in May, boss Jerome Powell said at a news conference, suggesting the process could have an impact equal to a further rate hike. Central bankers’ projections for inflation in 2022 have increased, while they have reduced GDP growth expectations to 2.8% from 4%.
3. Oil goes up as IEA issues bid warning
Oil pumping jacks, also known as “nodding donkeys,” at a Rosneft Oil oilfield near the village of Sokolovka in the Republic of Udmurt, Russia on Friday, November 20, 2020.
Andrei Rudakov | Bloomberg | Getty Images
Oil prices rose on Thursday, bucking a recent downward trend, in light of renewed supply concerns related to the Russia-Ukraine war. US West Texas Intermediate (WTI) crude rose roughly 4.5%, trading above $ 99 a barrel, while international benchmark Brent crude advanced roughly 4.85% to nearly $ 103 a barrel. The move comes after the International Energy Agency warned that around 3 million barrels per day of Russian crude oil and refined products could be lost from oil markets in April. This would outweigh the drop in demand that should cause oil prices to rise. In early March, WTI and Brent hit 14-year highs near $ 130 and $ 139 a barrel, respectively.
Elsewhere in the commodity markets, the three-month nickel benchmark contract collapsed and reached the new 8% bearish limit. Nickel futures on the London Metal Exchange were extremely volatile this month, punctuated by a major short squeeze on March 8 that resulted in changes to trading rules.
4. Biden calls Vladimir Putin a “war criminal”, rejects the Kremlin
On March 9, 2022, United States President Joe Biden holds a virtual meeting with business leaders and state governors to discuss supply chain issues, especially semiconductor chips, on the White House campus in Washington, March 9, 2022.
Jonathan Ernest | Reuters
US President Joe Biden has called his Russian counterpart, Vladimir Putin, a “war criminal” for Moscow’s assault on Ukraine. It was the first time Biden had publicly referred to the Russian president by that time, and the Kremlin has objected. He said Biden’s rhetoric was “unacceptable and unforgivable,” according to the Russian news agency Tass.
The Russia-Ukraine war has entered its fourth week. On Thursday, Kremlin spokesman Dmitry Peskov said the two sides were nowhere near reaching an agreement to end the fighting. There had been some more positive comments on the peace talks in the past few days. “The work continues: when there is progress, we will report,” Peskov said, according to a translation by NBC News.
5. Russia claims to have paid a $ 117 million bond
photographer | collection | Getty Images
Russia’s finance ministry on Thursday said it paid about $ 117 million in interest on two dollar-denominated Eurobonds as Moscow tries to avoid its first foreign currency debt default in more than a century. Russia has been hit with an onslaught of economic sanctions by the United States and other nations in response to its invasion of Ukraine; some sanctions have frozen the assets of the Russian central bank. The country’s currency, the ruble, has also seen its value plummet against the dollar. The developments have fueled fears about Russia’s ability to pay interest on foreign currency debt.
– CNBC’s Chloe Taylor contributed to this report.
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