US stock futures tumble on Sunday after Wall Street’s worst week since January

US stock index futures fell on Sunday after Wall Street’s worst week since January.

Dow Jones Industrial Average Futures YM00,
fell more than 170 points, or 0.5%, late Sunday, while S&P 500 Futures ES00,
and Nasdaq 100 Futures NQ00,
recorded declines closer to 1%.

Bitcoin and other cryptocurrency prices also fell over the weekend, with Bitcoin BTCUSD,
just above $27,000, about 60% below its all-time high from last November. Crude Oil Prices CL.1,
also dived Sunday.

Shares closed significantly lower on Friday. the dow DJIA,
fell 880 points, or 2.7%, to close at 31,392.79; the S&P 500 SPX,
slipped 116.96 points, or 2.9%, to end at 3,900.86; and the Nasdaq Composite COMP,
plummeted 414.20 points, or 3.5%, to end at 11,340.02.

Read: Stocks fall again as hot inflation hits market shockwaves: what investors need to know

For the week, the Dow is down 4.6%, the S&P 500 is down 5.1% and the Nasdaq is down 5.6%. It was the biggest weekly loss since January for all three major benchmarks, according to Dow Jones Market Data.

Markets fell on renewed inflation concerns as a new report showed hotter-than-expected readings. The CPI on Friday showed US inflation rose 1% in May, well above the 0.7% monthly increase forecast by economists polled by the Wall Street Journal. The annual rate rose by 8.6%, beating a 40-year high of 8.5% in March.

Federal Reserve policymakers are due to meet this week and are expected to hike interest rates by 50 basis points, although some economists believe there could be support for a more aggressive 75 basis point hike after Friday’s CPI report.

See also: ‘Doves don’t exist in FOMC right now’: Economists expect a hawkish Fed meeting this week

“The US CPI for May has been a nightmare for risk markets,” Stephen Innes, managing partner at SPI Asset Management, wrote in a note on Sunday. “The market is now thinking a lot more about the Fed raising rates sharply to contain inflation and then having to cut them when growth slows.

That has traders and investors “considering how much more tightening central banks can deliver and therefore how much higher returns are possible from here. And we all know that nothing good happens when interest rate volatility increases in capital markets,” he said. US stock futures tumble on Sunday after Wall Street’s worst week since January

Brian Lowry

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