3 things to watch out for by Investing.com

© Reuters.

By Sam Boughedda

Investing.com – Stocks fell on Wednesday afternoon after the Federal Reserve signaled it could be more aggressive in tackling inflationary pressures with rate hikes as it softens its stimulus measures.

Investors were already expecting rate hikes as early as March, pushing Treasury yields higher this week. Wednesday’s private wages report, which comes days before the government’s monthly employment report, showed companies created 807,000 jobs last month. This was more than double the number economists had predicted.

Tech stocks have slumped because rising inflation tends to cloud the outlook for growth companies, but the broad index has fallen as well, as have blue-chip stocks.

Thursday brings the weekly jobless claims for the previous week, another indicator used by investors to measure the progress of the recovery.

Here are three things that could affect the markets tomorrow:

1. Fed Outlook

After their meeting last month, Federal Reserve officials called the job market “very tight” and signaled that it may have to raise interest rates sooner than they would have done earlier. Last year.

“It may become justified to increase the federal funds rate sooner or at a faster rate than participants previously anticipated. Some participants also noted that it may be appropriate to start reducing the size of the balance sheet. from the Federal Reserve relatively soon after starting to raise the federal funds rate, ”the minutes said.

2. Oil market

Oil rose for a third day in a row after an unexpected increase in fuel inventories.

As crude inventories fell 2.114 million barrels last week, the Energy Information Administration, or EIA, said on Wednesday. Analysts tracked by Investing.com rather expected a drawdown of 3.283 million barrels.

Gasoline inventories jumped 10.128 million barrels last week, the EIA said, compared to expectations of a 1.775 million increase. The historic EIA has shown this to be the largest weekly increase in gasoline inventories since April 2020, at the height of the coronavirus crisis.

3. Chinese equities

Chinese companies’ ADRs and stocks traded weaker as China’s cybersecurity regulator on Wednesday released draft rules that, if implemented, will place a heavier compliance burden on applications. whose functions are perceived to influence public opinion.

In an unrelated development, but one which still reflects the tightening of oversight of China’s internet giants, the country’s market regulator has fined the units of the Internet. Ali Baba Group Holdings Ltd ADR (NYSE :), Tencent Holdings Ltd ADR (OTC 🙂 and Bilibili Inc (NASDAQ 🙂 for failing to properly report a dozen trades.

–Investing.com staff and Bloomberg contributed to this report

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Felix J. Dixon