August 7, 2022

Dow Futures Edge Higher, Dollar Gains As US Markets Steady

The Thursday Market Minute

  • Global stocks slide following last night’s sell-off on Wall Street as investors continue to focus on the economic impact of a coronavirus resurgence and the potential for U.S. electoral chaos.
  • President Donald Trump refuses to commit to a peaceful transition of power during a question-and-answer with reporters, suggesting election night controversies that could hammer stocks and disrupt world markets.
  • The U.S. dollar climbs to a near two-month high against its global peers as cautious traders position themselves into the final weeks before the November vote.
  • Oil prices slip lower after a bigger-than-expected drawdown in U.S. crude and data showing fuel demand is down nearly 10% from last year.
  • U.S. equity futures suggest a mixed open on Wall Street ahead of weekly jobless claims at 8:00 am Eastern time and Fed Chairman Jerome Powell’s third day of Congressional testimony, this time to the Senate Banking Committee, at 10:00 am Eastern time.

U.S. equity futures steadied Thursday, while the dollar extended gains to a near two-month high, as markets continue to focus on weakening economic growth, the lack of consensus on fresh fiscal stimulus and the potential for looming electoral chaos in November.

With coronavirus infections rising sharply in Europe, and trending well ahead of weekly averages in the United States, investors are worried that a lack of financial support from lawmakers in Washington could compound the weakness seen in consumer and employment markets over the final months of the year.

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