It could be another day of the slump for the U.S. markets as the futures are hinting to a lower opening. The weakness in oil, which built up on account of a steep rise in the stockpiles, dragged the energy stocks down and pulled down the equities.
Market swings became calmer
During the early hours, S&P 500 Futures slipped 0.36% to 2,021.50 while Nasdaq Futures lost 18.50 points to 4,377. Previous day’s session disrupted the rally that had helped the major U.S. indices to hit their highest levels since December. According to Larry Peruzzi, who is managing director of international equity trading at Mischler Financial, said that the investors are getting calmer in deciding their next move after a roller-coaster ride in the last two months.
Meanwhile, it will be seen how the markets will react to the Fed’s aggressive tone of rate hikes by as early as next month. The extremely hawkish comments by the Fed officials has already sparked a rally in the U.S. Dollar, which has hit a one-week high against major currencies. The strengthening of the greenback has already caused a stir in Asian and European equities, which might leave some reflection on the U.S. equities today.
Oil to drive markets
Apart from this, the continued pressure on oil is likely to weigh on the market sentiment. The Brent Crude journeyed to further south, dipping 0.37% to $40.32. The West Texas Intermediate too fell 0.96% to $39.41 during the late Asian hours. The pressure on the commodity grew after the U.S. Department of Energy reported an increase in the crude stockpiles by three times above the expectations. The agency posted an increase of 9.4 million barrels in the stocks during the previous week, which came higher than the American Petroleum Institute’s data showing an increase by 8.8 million barrels.
Later today, the market will focus on the jobless claims data and report on durable goods, which is due to release later today.