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Stock futures fall amid wave of new economic data – OPEC+ agrees not to increase oil production – Tesla to cut production at Shanghai plant – FTX founder Bankman-Fried says he’ll testify before U.S. House committee
US stock futures fell on Monday following the latest economic data, particularly stronger-than-expected jobs data, which is the opposite of what the Federal Reserve would like to see as it battles to get inflation under control. Friday’s unemployment figures also show that the demand for workers is out of balance with supply, potentially signaling to Fed policymakers to take interest rates higher or to keep them higher for a longer duration, Yahoo reported.
The S&P 500 ticked down by 0.5% in premarket trading, while futures on the Dow Jones Industrial Average moved lower by 0.4%. The technology-heavy Nasdaq Composite dropped by 0.4%.
Oil prices traded higher, with crude futures at $81.64 per barrel.
As of 9:04 AM EST, the benchmark 10-year US Treasury notched up at +0.0342 to a yield of 3.535%.
OPEC+ provoked anger from Washington in early October when it said it was cutting back on oil production, and at its latest meeting on Sunday, it agreed to stick to its policy of reducing its output to 2 million barrels per day, roughly 2 percent of world demand, FOXBusiness reported.
The Biden administration accused OPEC+’s leader, Saudi Arabia, of effectively siding with Russia in its war against Ukraine. However, OPEC+ ministers denied political motivation for the move, saying the cut was made in response to a weaker economic outlook. Higher interest rates and slower growth, particularly in China, have caused oil prices to decline in recent weeks.
Shares of Tesla (TSLA) fell 4% in premarket trading after Bloomberg reported the company announced a plan to cut production at its Shanghai factory, a move that investors see as the latest sign of weak demand in China, Yahoo reported.
In premarket trading at 9:08 AM EST, Tesla shares had dropped -5.41 (-2.78%) to $189.45 after previously closing on Friday at $194.86.
Former FTX CEO Sam Bankman-Fried said in a tweet on Sunday he would testify before the House Financial Services Committee after he finishes “learning and reviewing” the events that led to the collapse of his cryptocurrency exchange, Reuters reported.
In December, the U.S. House Financial Services Committee plans to hold a hearing to investigate the collapse of FTX and will be expecting to hear from the companies and individuals involved – which includes founder and CEO Bankman-Fried.
