US Futures Slide With markets Bracing for Powell – Europe Market Wrap

Stocks slumped on mixed earnings and rekindled concerns about US interest rate hikes for the foreseeable future, with all eyes on the Federal Reserve’s policy announcement later Wednesday. Brent crude fell for a third day.

The risk-off sentiment remained, with S&P 500 futures pointing to more losses on Wall Street after US data on Tuesday reinforced betting that policymakers will hold interest rates at a two-decade high. Europe’s Stoxx 600 index moved down in holiday-shortened trade. The dollar index was barely altered, while the policy-sensitive two-year Treasury yield remained at a six-month high.

The last time Fed Chair Jerome Powell spoke, he noted the lack of progress in lowering inflation. The most recent indications on prices and the economy, together with expectations for a strong jobs data on Friday, indicate that the prospects of a change in tune are minimal.