US Stocks Drop after Two-Day Losses

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US Stock Futures Drop after Two-Day Losses

US stocks dropped Wednesday after the S&P and Dow’s two-day losses.

The Dow Jones Industrial Average futures dropped 0.1 percent or 20 points to 16,994. The S&P index futures dropped 0.1 percent or 3 points to 1,986 while the Nasdaq-100 futures fell 0.1 percent or 6 points to 4,555.

According to The Wall Street Journal, the losses of this week came after the S&P closed on Friday at a record high, the 33rd this year. In 2014, the index was up by 7.6% through the close on Tuesday. Investors are diverting their attention to the Federal Reserve’s meeting next week, when the central bank will describe how and when to raise the interest rates.

IG Market analyst, Chris Beauchamp said, “The unwelcome specter of interest rates rises hangs over markets.”

Wednesday’s continued decline in Treasury prices attracted attention. There was a 2.528% increase on the 10-year benchmark note. Chief investment officer of BMO Private Bank, Jack Ablin said, “Absent any news, all we can watch are those rising yields and that will tend to put downward pressure on stock prices.”

ABC News reports that Krispy Kreme Doughnuts dropped 3.6% or 63 cents to $15 after it announcement earning that did not meet analysts’ expectations.

Europe stocks were flat with the CAC-40 of France slipping 0.3% while DAX of Germany dropped 0.4%. The FTSE 100 of Britain stood steady at 6,828.

Investors are watching China amid signs of decline in the growth of the economy. In August, manufacturing and imports shrank drastically by 2.4%.

In the commodity markets, the benchmark US crude dropped 50 cents at $92.28 per barrel on New York Mercantile Exchange. Traders expect ample supplies of oil to be accompanied by weak demand for the commodity. The prices of bonds fell. Gold futures increased to $1,250.30 per ounce by 0.1%.

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To contact the reporter of the story: Jonathan Millet at john@forexminute.com