Stocks Futures on Wall Street are trading lower ahead of the opening bell on Monday amid inflation fears and Fed’s rate hike this week.
Dow Jones Futures fell 1.88% to 30,803.80 points. Meanwhile, S&P 500 Futures dropped 2.38% and Nasdaq Futures plunged 2.93%.
The fall in Nasdaq Futures came after Bitcoin fell below $25,000 level, its lowest level since December 2020.
Stocks in Asia also closed lower on Monday. Nikkei decreased 3.01%, SSEC slipped 0.89%, Hang Seng Index fell 3.39% and IDX Composite dipped 1.29%.
Thailand’s SET Index closed at 1,600.06 points, decreased 32.56 points or 1.99% with a trading value of 73 billion baht.
The U.S. inflation that investors once believed to peak in March and start slowing down in April turned out in an opposite direction after consumer prices accelerated to 8.6% in May, beating the consensus of 8.2%.
Investors were concerned that a higher-than-expected inflation in May could prompt the U.S. Federal Reserve to finally hike an interest rate at a faster pace than what the market had anticipated.
Goldman Sachs raised its terminal rate forecast to 3.25-3.5%, adding 50 basis points in September and November and 25 basis points in December and January.
According to Reuters Poll, the market expected the Fed’s funds rate to finish the year at 2.5 – 2.75%. Two more hikes are now expected in 2023 in 1Q and 2Q. The rate should maintain at 3.00 – 3.25% throughout 2023.