As interest rates continue to upset investors and stock futures fall, Gap’s share price leads retail sales down

US stock index futures fell in early Wednesday trading, as rising interest rates continued to scare away investors in high-priced technology stocks.

Earlier Wednesday, other factors also affected the market:

  • Due to poor quarterly results, traditional retail stocks were hit. In premarket trading, Gap fell 21% and Nordstrom fell about 27%. Both companies reported lower-than-expected earnings in the most recent quarter.
  • The rising number of Covid cases in Europe continues to worry investors.Germany is considering Full Covid Lock.
  • A series of economic data to be announced this morning will determine the transaction, including weekly jobless claims, the second GDP update and the Fed’s preferred inflation indicator (PCE deflator). The Fed will announce the minutes of the last meeting this afternoon.

The Dow Jones Industrial Average futures fell 127 points, or 0.4%. Standard & Poor’s 500 index futures fell 0.3%, and the Nasdaq 100 index futures also fell 0.3%.

Since President Joe Biden re-nominated Jerome Powell as chairman of the Federal Reserve on Monday, yields have been rising. The 10-year U.S. Treasury bond yield closed at 1.55% last week and was last reported at 1.65% on Wednesday.

Changes in interest rates have caused investors to flee technology stocks and growth stocks, while boosting some bank stocks and energy stocks. So far, the fragmented market has kept the Dow Jones index green this week, the S&P 500 index has fallen slightly, and the Nasdaq composite index has fallen about 1.8%.

The US market is closed for Thanksgiving on Thursday and will close early on Friday, shortening the trading hours.

“This is of course a more rotating story,” said Rob Haworth, senior investment strategist at Bank of America Wealth Management. “The market now-with Powell’s renomination-considers this to be a reopening story, which puts aside any risks or concerns that we may have about the rise in Covid infection rates.”

Gap stock price plummeted After the company said the third quarter results were less than expected Because the product is delayed. Earnings per share in the last quarter were only 27 cents, almost half of what analysts expected.

Tesla shares fell again after Elon Musk Sold another $1 billion in stocks.

Computer hardware company Hewlett-Packard’s share price rose more than 6% before the market, after the company reported earnings that exceeded the top and bottom lines, and issued higher earnings guidance for the first quarter.

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