Single-Stock Futures Lower as Fed Speech Approaches

The oncoming speech by the Chair of the Federal Reserve, Jerome Powell, is highly anticipated. However, it seems that traders are not expecting good news, as single-stock futures values have lowered.

For example, Dow Jones futures dropped by 0.10%, and it is the same with the S&P 500 single-stock futures. So, investors are seemingly somewhat nervous.

We can also look at more specific measurements for real companies, the hot futures in the market. Tesla, the most prominent self-driving automaker, has had a 4.00% drop in its shares. This occurred after the release of the latest earnings report for the last quarter. Analysts had been expecting the company to earn $0.73 per share, making $24.1 billion in revenue. In reality, they earned $0.66 a share and had a revenue of $23.35 billion.

Netflix, on the other hand, is on the up. It managed to rise up by 13.00% in the value of its shares. Its earnings and revenue fared quite well in comparison. Analysts originally projected earnings of $3.49 per share, but Netflix outdid this, going to $3.73 per share.

Single-Stock Futures and Market Volatility

Still, on the whole, stocks have not been doing well. Wednesday saw huge sell-offs. This is due to the reasons we mentioned earlier, as well as the fact that Treasury yields reached record highs. 10-year Treasury yields, for example, went up as high as 4.90%, a 16-year high. This could have implications for bond futures as well.

Understandably, stock indices plummeted. The Dow fell 0.87%, and the S&P was down 1.30%. The worst of it was the Nasdaq, though, with a 1.60% drop.

With all this going on, investors are keen to understand what is going on with interest rates. They are looking forward to hearing about the Fed’s plans this Thursday. Inflation is improving, but no one is certain about what will happen to interest rates and, thus, the effects on single-stock futures.