Investors have been rattled by geopolitical uncertainties, by signs that Europe’s economy appears to be weaker than expected, and by still more by interest rate increases by central banks as they try to get inflation under control, according to the Associated Press.
High interest rates in the U.S. have already dragged manufacturing and other industries into contraction, while also contributing to several failures in the banking system that shook nationwide confidence.
Federal Reserve Chair Jerome Powell said last week that even though his central bank didn’t raise rates last week, it could still push through a couple more hikes by the end of this year.
A preliminary report last week indicated the overall U.S. economy continues to grow, even though manufacturing is shrinking, and its output fell to a five-month low.
Today, the futures for the Dow Jones Industrial Average and S&P 500 futures were down 0.2%.
In energy trading, benchmark U.S. crude rose 11 cents to $69.27 per barrel in electronic trading on the New York Mercantile Exchange. It fell 35 cents to $69.16 on Friday. Brent crude, the international standard, gained 15 cents to $74.16 a barrel.
In currency trading, the U.S. dollar fell to 143.14 Japanese yen from 143.58 yen. The euro cost $1.0898, inching down from $1.0903.
