U.S. stock futures tumbled early Wednesday after a widespread sell-off kicked off the short-term week, with investors awaiting the release of minutes of the Federal Reserve’s latest meeting. in the afternoon.
Futures contracts tied to the S&P 500 (^GSPC), Dow Jones Industrial Average (^DJI) and the tech-heavy Nasdaq Composite (^IXIC) were all floating below the flat line at 7:10 a.m. ET.
Coinbase (COIN) were among the morning movers, down 1.7% before the market opened, even as the crypto exchange reported fourth quarter results beat Wall Street estimates and losses for the full year were narrower than feared.
Elsewhere in specific names, Palo Alto Networks’ (PANW) the stock was up nearly 10% in early trading after Cybersecurity firm raises annual profit outlook and said they are working to manage costs.
Chinese search engine Baidu (BIDU) report fourth quarter results better than expectedDriven by strength in the cloud, advertising and artificial intelligence segments.
Stock meme loves AMC Entertainment (AMC) was followed later Allegheny County Employees’ Retirement System filed a class action lawsuit in Delaware accused the movie theater company of creating preferred stock without their permission.
In the bond market, Treasury yields were steady early in the day after surging on Tuesday to their highest levels since November.
The moves follow Tuesday’s sharp sell-off that saw the S&P 500 drop 2% below 4,000, the Dow down 700 points and the Nasdaq drop 2.5% – moves that come as investors Investors adjust their expectations of higher interest rates over a longer period of time.
Minutes of the Federal Open Market Committee (FOMC) meeting from January 31 to February 31 will provide insight into the thinking behind the 25 basis point rate hike by key stakeholders. position at the beginning of the month. Cleveland Fed President Loretta Mester admitted in a speech last week She would have supported a 0.50% rate hike, but officials don’t want to surprise markets that are already pricing in 25 basis points.
New York Fed President John Williams is also expected to speak later in the day. in one speech earlier this monthHe confirmed that Fed officials plan to keep the interest rate hike campaign going until inflation falls below the 2% target.
“While the stock market has had an impressive rally this year, markets are still trying to adapt to the fact that the Federal Reserve is unlikely to pivot and instead remain focused on inflation, which suggests investors should be prepared for interest rates Carol Schleif, chief investment officer at BMO Family Office said in a note.
“Wednesday’s FOMC minutes report is sure to reveal more insight into the Fed’s thinking, especially given the recently released inflation and employment figures, which are still rising and illustrate a hot economy.”
Wall Street banks have revised their expectations for upcoming rate hikes by the Federal Reserve.
Teams at Goldman Sachs and Bank of America said last week they estimate three more rate hikes this year. Before the rate hike in February, some market participants saw the move as potentially marking the end of the Fed’s rate hike cycle.
—
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
Click here to view the latest trending tickers of the Yahoo Finance platform
Click here for the latest stock market news and in-depth analysis, including stock-moving events
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, flip chart, LinkedInAnd YouTube
