- As risk appetite decreased as a result of Jerome Powell's prediction that the federal reserve will increase interest rates more than initially anticipated, stocks and bonds declined. dollar increased.
- In response to Wednesday's 2.5% decline, the S&P 500 futures dropped 0.7%. The selloff expanded to Europe and Asia, where hopes of a reopening were shattered by China's reinforcement of its COVID-zero position. In premarket trade, Etsy and eBay gained while Qualcomm and Roku fell.
- Following the Fed's 75 basis-point increase, the Bank of England is poised to do the same later on Thursday, albeit rates there may be constrained by the possibility of a severe recession. Powell let down investors hoping for a change of direction as the US economy remained robust to persistently rising inflation.
- The dollar increased as investors anticipated US jobs data, which may help predict the timing of future rate hikes. The krone of Norway sank as its central bank announced the weakest increase in its benchmark rate since June, while the pound dropped more than 1% as worries grew that a smaller-than-expected BoE boost could exacerbate the sterling's decline.
