US open: Futures fall ahead of Fed minutes

Futures in the United States

Futures for the Dow Jones Industrial Average are down 0.75 percent at 34390.

Futures on the S&P 500 are down 1% at 4480.

Nasdaq futures are now trading at 14582, down 1.64 percent.

In Europe, the FTSE is down -43% at 7560.

At 14100, the Dax is down 2%.

At 3828, the Euro Stoxx is down 2.34 percent.

Find out more about indices trading.

Stocks have taken a knock due to Fed concerns.

Ahead of the FOMC minutes, US markets are expected to begin lower, extending losses from the previous session.

Following increased predictions of a more hawkish Federal Reserve, Wall Street finished lower yesterday and is still under pressure today. In order to reign in soaring inflation, Fed Governor Brainard hinted at higher interest rate rises and a quicker runoff on the balance sheet.

The market is putting in a 76.6 percent chance of a 50 basis point rate rise in May, according to the CME Fed Funds. Rates are expected to be raised by 225 basis points before the end of the year, according to the market.

Yesterday, high-growth tech trailed behind its big counterparts, with the NASDAQ100 losing roughly 2.2 percent. Today, the NASDAQ is expected to underperform once again.

The focus now shifts to the publication of the minutes from the March Federal Open Market Committee meeting. This was the first time the Fed increased interest rates since 2018, and it might provide further insight into the future path of interest rate rises and the pace at which the balance sheet would be decreased.

Separately, reports about Russia continue to dominate the news cycle, pushing up oil prices. New sanctions have been imposed on Russia in response to the war crimes perpetrated by Russian military in Ukraine.

In business news, JetBlue Airways revealed that it has made an unsolicited $3.6 billion proposal to Spirit Airlines in order to provide the four main US airlines more competition.

Where does the S&P500 go from here?

After recovering from its March 15 low of 4140, the S&P500 hit resistance around 4630 and has been moving downward since. The price has fallen below the 100 SMA, and the MACD has crossed to the negative side, giving sellers optimism for further downside.

Support is indicated at 4425, the 50 SMA, and the high of March 3. A break below this level might go to 4345, the high from March 11 and the low from March 17. Any rebound, on the other hand, would have to surge above the 100 SMA at 4535 in order to reach 4630, the March high.