US stock futures rose after data showed the US economy rebounded in the third quarter, with traders still digesting the European Central Bank’s decision to raise its policy rate and signal more tightening ahead.
(Bloomberg) — US stock futures rose after data showed the US economy rebounded in the third quarter, with traders still digesting the European Central Bank’s decision to raise its policy rate and signal more tightening ahead.
Contracts on the S&P 500 rose, while futures on the Nasdaq 100 are little changed.
Meta Platforms Inc. shares plunged as much as 21% in premarket trading after the Facebook parent gave a disappointing revenue forecast and asked investors for patience as costs soared.
The Stoxx Europe 600 Index fell 0.8% after the ECB lifted its policy rate by 75 basis points, in line with expectations.
The euro extended losses against the dollar and the yield on 10-year German bunds pared a rise.
The yield on the 10-year Treasury bond rebounded after inching below 4% earlier, with investors positioning for less aggressive rate hikes as earnings and economic data indicate a slowdown.
The benchmark US yield has dropped more than 20 basis points over the past two days. A gauge of the dollar gained after two days of steep declines.
A contraction in services and manufacturing, and fewer new home sales showed the Fed’s efforts to cool the economy seem to be bearing some fruit.
Still, economists expect the Fed to hike by 75 basis points for the fourth time in a row when it meets next week. Traders have cut expectations for rates to peak next year to 4.86% from 5% a week ago.
Oil fluctuated after touching the highest level in about two weeks after US Secretary of State Anthony Blinken said a deal with Iran would be unlikely to advance in the short term.
Traders placed bets on a soaring price for aluminum as the US considers adding the metal to sanctions against Russia, a major producer.
Iron ore futures slumped to the lowest since May 2020 on concern overan economic slowdown in China.
Key events this week:
- Bank of Japan policy decision, Friday
- US personal income, personal spending, pending home sales, University of Michigan consumer sentiment, Friday
Some of the main moves in markets:
Stocks
- Futures on the S&P 500 rose 0.4% as of 8:32 a.m.
New York time
- Futures on the Nasdaq 100 were little changed
- Futures on the Dow Jones Industrial Average rose 0.8%
- The Stoxx Europe 600 fell 0.7%
- The MSCI World index was little changed
Currencies
- The Bloomberg Dollar Spot Index rose 0.4%
- The euro fell 0.7% to $1.0013
- The British pound fell 0.4% to $1.1574
- The Japanese yen fell 0.2% to 146.59 per dollar
Cryptocurrencies
- Bitcoin fell 0.3% to $20,683.22
- Ether rose 0.4% to $1,559.45
Bonds
- The yield on 10-year Treasuries advanced two basis points to 4.02%
- Germany’s 10-year yield declined three basis points to 2.08%
- Britain’s 10-year yield declined two basis points to 3.55%
Commodities
- West Texas Intermediate crude rose 0.6% to $88.44 a barrel
- Gold futures fell 0.4% to $1,661.70 an ounce
–With assistance from Allegra Catelli, Richard Henderson, Ruth Carson and Masaki Kondo.
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