S&P 500: Stocks still under pressure, futures in the red

• After Thursday’s sharp drop, stocks fail to recover.
• In Europe, red exceeds 1% in several places.
• The “hawkish” tone of Fed officials and the inflation data weigh on the market mood.

Wall Street’s major indices closed significantly lower on Thursday, with the S&P 500 shedding 1.80%. The futures indicate that there will be no recovery at the opening since in the previous one the future of the index yields 0.10%. The expectation of the monetary policy of the Federal Reserve affects the markets. The S&P 500 is on track for its worst week since mid-January.

Thursday’s US inflation data showed the highest rate since 1982, above expectations. This initially triggered a rally in the dollar and a pullback in equities. The recovery ended in a crash following comments from FOMC member James Bullard that a 100 basis point hike could be in the offing for July.

Treasury bond yields hit multi-year highs. The 10-year bond reached 2.05% and on Friday it is moderating the rise and stands at 1.99%. The 30-year tranche is at 2.28%.

In Europe , the FTSE 100 lost 0.67%, the DXY 0.34% and the CAC 40 1.10%, affected by the weather that left Wall Street on Thursday afternoon. Oil strongly resists the negative tone. The barrel of WTI operates above 91.00, rising 1.42%. Gold is trying to recover the $1830 zone and silver has recovered $23.00 for the time being.

Traders’ focus will remain particularly on expectations around the Fed and the bond market. In terms of data, the preliminary estimate for February of the University of Michigan Consumer Confidence index will be published.

SP500