Investors Take Stock After Unstable Week

investors take stock

On Thursday, U.S. stock index futures eased as investors took stock of a heavy round of corporate results following the most volatile trading week seen in nearly three years.

By 6:50 a.m. EST: Dow e-minis were down 47 points, or 0.19 percent. S&P 500 e-minis were down 5.25 points, or 0.2 percent, with 226,163 contracts traded. Nasdaq 100 e-minis were down 2.25 points, or 0.03 percent, on volume of 59,558 contracts.

Wall Street eased back from its early surge on Wednesday as investors still questioned the intense drop seen earlier in the week, where the Dow Jones Industrial Average recorded its biggest intraday fall, ever.

On Thursday, the market’s main gauge of volatility, the CBOE Volatility Index, dropped to 28.50. On Tuesday the index hit its highest level since August 2015.

Investors are considering whether the sharp swings are the beginning of a deeper correction or just a temporary hurdle in the nine-year bull market, encouraged by fears over rising interest rates and bond yields.

On Thursday, Dallas Fed President Robert Kaplan stated that the central bank may raise rates three times in 2018 and the recent volatility was not enough for him to change his base scenario.


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Philadelphia Fed President Patrick Harker, Minneapolis Fed chief Neel Kashkari and Kansas City Fed President Esther George are all scheduled for appearances later in the day at different events.

The 10-year U.S. Treasury yield rose to 2.83 percent, almost touching Monday’s four-year high of 2.885 percent.

Economic data at 8:30 a.m. EST is expected to show weekly jobless claims increased to 232,000 from the previous week’s 230,000.

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Among stocks, Tesla fell 1.4 percent in premarket trading after the electric automaker said spending may increase this year.

Twitter soared 11.8 percent following its report of its first quarterly net profit and the surpassing of Wall Street targets as video ad sales rose.

Yelp plunged 11 percent after several brokerages reduced their price targets on the company’s stock following its quarterly results.


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