US stocks are under pressure on Friday after a positive week so far. Leading up to the weekend, the interest rates and bearish fears that have surfaced during the week will be accompanied by statements from some central bankers not expecting a more moderate pace of rate hikes. Some investors may be more inclined to take profits after the recent rally as economic data fell the previous trading day.
Major US indices fell mid-week after a rally that began in mid-July. There was only a minor correction due to the slight recovery from the previous day. The main US index is expected to rise slightly above the long-awaited mark of 34,000 points, as broker IG predicted the Dow would fall nearly 0.7 percent to 33,746 points, about 45 minutes before trading resumes. The tech-heavy Nasdaq 100 was last expected at 13,355 points (minus 1.1 percent).
Traders pointed to statements by Fed members James Bullard of St. Louis and Esther George of Kansas City that the Federal Reserve would raise interest rates until inflation returns to its 2 percent target. In doing so, he lowered market expectations that some weak economic data could prompt US officials to recover rather than tighten monetary policy so quickly. Since the Fed’s minutes were released mid-week, stock market sentiment has been tarnished as it became clear that the central bank will continue its tough stance on rate hikes even as the economy slows.
The shares of Bed Bath & Beyond in particular are in the spotlight of the company on Friday. The retail conglomerate’s papers are still in freefall since the departure of active investor Ryan Cohen. After already losing a fifth of its value on Thursday, the price recently fell more than 40 percent for the market. This year, Cohen’s investment in Bed Bath & Beyond has resulted in several runs for the ailing stock. The investor, who is seen as a role model especially for young investors, has since earned back his investments by selling millions of shares through his investment company RC Ventures.
A pre-market price increase of about a fifth led to equal praise for the future Foot Locker boss: The sports retailer, together with Mary Dillon, has appointed a big name in the industry. After successfully managing the cosmetics chain Ulta Beauty until last year, the experienced manager will take over the management of Foot Locker on September 1. She replaces Richard Johnson, who is retiring. On Friday, the group also scored with investors with better-than-expected quarterly figures.
That was the demand for General Motors shares, as after a pandemic-related hiatus of more than two years, the automaker is looking to pay its shareholders quarterly dividends again – albeit significantly less than before the coronavirus outbreak. To be. Management wants to resume interrupted share buybacks and increase it to $5 billion.
Farm equipment maker Deere & Co, on the other hand, is likely to disappoint investors. Despite a surprisingly strong sales performance, the company’s quarterly results fell short of expectations. So the group lowered its outlook, putting pressure on the stock even before trading officially began.