Stock futures were mixed in the early morning trading hours on Thursday, as investors processed the Federal Reserve’s intent to shrink its balance sheet by around $95 billion per month, likely from May onwards.
Futures contracts tied to the Dow Jones Industrial Average (DJIA) hovered 0.01% below the flatline, as of 5.35 a.m. EST, on Thursday. Meanwhile, futures on the S&P 500 (SPX) and the Nasdaq 100 (NDX) inched up 0.17% and 0.43%, respectively.
The minutes from the Fed meeting in March that were released on Wednesday triggered panic sell-offs, especially in the technology sector. At the closing of the regular trading hours on Wednesday, the tech-heavy Nasdaq 100 declined 2.17%, while the S&P 500 and Dow slipped 0.97% and 0.42%, respectively.
Not that the crackdown on the burgeoning inflation was unexpected, but clearer information on the extent of balance sheet reduction made investors more aware of the economic situation and take firmer decisions regarding their investments. Policymakers also hinted at the possibility of multiple 50-basis-point interest rate hikes to contain inflation, making many investors look for safer investment options.
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