S&P 500 futures are flat as investors continue to appreciate commodity prices and the ongoing war in Ukraine
Trader at the NYSE, March 8, 2022.
Source: NYSE
S&P 500 futures contracts were flat on Tuesday night as investors continued to assess soaring commodity prices and high inflation while the war in Ukraine continued.
Futures tied to the Dow Jones Industrial Average rose 47 points, or 0.1%. S&P 500 futures were flat and Nasdaq 100 futures lost 0.1%.
The major averages all closed lower after a volatile trading day. The Dow gave up a gain of 585 points to end the day down 184 points, or 0.5%, sinking deeper into its correction. The S&P 500 index fell 0.7%, also entering a correction zone. The Nasdaq Composite lost 0.2% after entering bear market territory on Monday.
The market volatility is driven by uncertainty among investors as they continue to assess the rise in prices of commodities such as oil, gasoline, natural gas and precious metals. That raised concerns about a slowdown in global growth amid rising inflation.
It remains to be seen whether the Federal Reserve can manage a gentle economic landing, but whether the US can avoid a recession, according to Ross Mayfield, investment strategy analyst at Baird. .
“The strength of the aggregate U.S. labor market, consumer, and business sector will act as the weight that pulls us out of a recession in the short-term,” he told CNBC. “Overall, volatility is likely to continue, [there’s a] Many outcomes are possible in Ukraine, but the fundamentals of the US economy still look fine, especially if the Fed can navigate rate hikes without disrupting demand. “
Energy stocks are the bright spot in the market as oil prices continue to climb, jump to session high as President Joe Biden announced a ban on imports of Russian fossils, including oil, in response to the country’s invasion of Ukraine. That’s after oil hit a 13-year high of $130 earlier in the week.
Prices of other commodities continue to push higher, including nickel, hit a new record over $100,000 a ton.
Treasury yields also spiked, with the benchmark 10-year maturity adding nearly 10 basis points to 1.85%, as inflation fears sent investors down on bonds.
Earnings continue Wednesday with Campbell Soup, Crowdstrike and Marqeta ready to report.
On the economic data front, investors are expecting home-buying data from the Mortgage Bankers Association as well as the job openings and labor turnover survey, or JOLTS.
