Futures on the S&P 500 slipped 0.3 per cent and those on the rate-sensitive Nasdaq slid 0.6 per cent. Chipmakers Nvidia Corp and Advanced Micro Devices Inc fell about 0.7 per cent in pre-market trading, while Tesla shed more than 2 per cent after US regulators launched a probe over complaints about the steering wheel in some new models.
Investors are digesting Jerome Powell's signaling after the Federal Reserve chief told lawmakers no decision had been made on the pace of the next move. He reiterated however, that an acceleration in tightening was still on the table, and rates may go higher than anticipated should economic data warrant.
“We have moved from a regime of hyper liquidity to a regime of lower liquidity, from low rates to higher rates and that is generally not a great time for equities, especially if the Fed is trying to cool the economy,” Marc Rowan, CEO of Apollo Global Management told Bloomberg Television.
Oxymoron