Stock Market News Live Updates: April 7, 2022

US stock futures were flat ahead of overnight trading on Wednesday after a hawkish reading of the minutes from the Fed’s latest policy-setting meeting hinted that officials were prepared to intervene. more aggressively to curb inflation. sending the main indices falling in the previous session.

Futures linked to the S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite all hit the flat line in extended trading after a two-day losing streak for the benchmarks. The tech-heavy Nasdaq, which started the week up 2%, capped its second straight session with losses of 2.2%. Meanwhile, the 10-year Treasury yield soared to 2.6%, the highest level in three years.

Talks detailed in the minutes of the March 15-16 Fed meeting released on Wednesday suggested that policymakers will soon begin to undo the central bank’s $9 trillion balance sheetincluding $4 trillion in accumulated asset purchases to calm markets after the pandemic hit in early 2020. The minutes also indicated that many participants in the Federal Open Market Committee (FOMC) “would have preferred a 50 basis point hike ” in benchmark interest rates in March, when the Fed raised rates for the first time since 2018.

“When those minutes were released this afternoon, I think what you really saw was the solidification around the news that the Fed is very determined to fight inflation,” US Bank Senior Vice President Lisa Erickson said. he told Yahoo Finance Live.

Economists at Bank of America, which recently modified its Fed recommendation to include rate hikes of 50 basis points in June and July, said in a note Wednesday that the newly released minutes show enough evidence to tip the scales toward a two-fold hike. in May.

“The reality is that we are in uncharted waters here and the Fed has a difficult task undoing the tremendous monetary support over the past two years,” Allianz Investment Management senior investment strategist Charlie Ripley said in a note. “Against this backdrop, uncertainty in the path of monetary policy is likely to remain entrenched in the markets and that is exactly what we have been witnessing with the recent moves in interest rates and risk assets.”

Other headwinds that investors have to continue to navigate are the developments in the war between Russia and Ukraine. The United States imposed another round of sanctions on Wednesday that included a ban on US investment in Russia. The sanctions also targeted Russia’s Sberbank and Alfabank, two of the country’s largest financial institutions, as well as the two adult daughters of President Vladimir Putin, the wife and daughter of Russian Foreign Minister Sergei Lavrov. and senior members of the Russian security council. However, in the latest punitive measures energy transactions were missing.

Meanwhile, testifying before the House Financial Services committee on Wednesday, US Treasury Secretary Janet Yellen warned that Russia’s war in Ukraine will fuel “enormous economic repercussions around the world,” including interruptions in the flow of food and energy.

Yellen also said that Russia should be expelled from the forum of the Group of 20 major economiesand the United States will boycott “a series of G20 meetings” if Russian officials participate.

6:13 p.m. ET Wednesday: Futures muted after two-day losing streak

Here is where the markets were trading before the overnight session on Wednesday:

  • S&P 500 Futures (EN=F): -3.00 points (-0.07%) at 4,472.75

  • dow futures (YM=F): -29.00 points (-0.08%) to 34,370.00

  • Nasdaq futures (NQ = F): -1.00 points (-0.01%) at 14,504.25

  • Raw (CL=F): +$1.52 (+1.58%) at $97.75 a barrel

  • Gold (GC=F): +$5.00 (+0.26%) at $1,928.10 per ounce

  • 10-year Treasury (^TNX): +5.3 bps for 2.6090% throughput

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 4, 2022. REUTERS/Brendan McDermid

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 4, 2022. REUTERS/Brendan McDermid

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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