Stock futures slide as Fed triggers global rout G
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Stock futures slide as Fed triggers global rout
Gold slides 6%, dollar jumps
MADRID (MarketWatch) — U.S. stock futures tumbled on Thursday as global markets dug into a selloff begun by Wall Street a day prior, after the Federal Reserve signalled that its bond-buying program could be scaled back later this year. Downbeat China manufacturing data added to investor gloom.
Data on the calendar includes weekly jobless claims, which could tilt higher. Fresh data on the manufacturing sector is also due, along with leading economic indicators and a report on existing home sales.
Ramping up losses, futures for the Dow Jones Industrial Average (CBE
JU3) sank 128 points, or 0.8%, to 14,921, while those for the Standard & Poor’s 500 index (GLC:SPU3) fell 16.50 points, or 1%, to 1,607.50. Futures for the Nasdaq 100 index (GLC:NDM3) slid 31.75 points, or 1%, to 2,924.50.
“So where do we go from here? Well, the Fed have just made the market even more sensitive to data than it was previously, and the volatility surrounding each key data print will likely multiply,” Jim Reid, strategist at Deutsche Bank, said in a note. “We now think this will be a difficult few weeks for risk, especially if the data is on the stronger side.”
Weekly jobless claims are expected to have edged up to 340,000 in the week ended June 15, versus 334,000 in the prior week, according to economists polled by MarketWatch. That data is due at 8:30 a.m. Eastern Time. See data preview
The Markit Flash PMI is due at 9 a.m. Eastern, while the Philadelphia Federal Reserve’s index of business conditions is due at 10 a.m. Eastern, and both are predicted to show some improvement for U.S. manufacturers. The Philly Fed index is expected to move up to -1.0% in June from -5.2% in May.
Also at 10 a.m. Eastern, leading economic indicators index is projected to rise 0.2% in May, while sales of existing homes likely rose at a 5 million annual rate in the same month, said economists. http://www.marketwatch.com/story/stock-future...atest_news
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