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Stocks advance, AAA warns gas hike likely, More Meta layoffs, Fed chair in hot seat with Congress over expected interest rate hikes, Home prices could see double-digit drop, Walmart closes all Portland stores
Stock futures climbed on Monday, with S&P 500 futures notched up 6 points or +0.15%, while Dow Jones futures rose 18 points or +0.05%, and NASDAQ futures advanced 34 points or +0.28%, Yahoo reported.
The benchmark 10-Year U.S. Treasury was down -0.051 for a yield of 3.932%, while the 2-Year Treasury was down -0.033 for a yield of 4.861% as of 8:30 AM EST.
As extreme volatility continues, natural gas futures for April delivery plunged 12.30% on Monday, marking the biggest drop since January 30, when prices shed 14%, oil price.com reported. On Tuesday, natural gas made a rebound and advanced +2.29%, trading at 2.631.
In oil futures, WTI crude was down -0.76% and trading at $79.85 a barrel, while Brent crude was down -0.70% and trading at $85.58 a barrel as of 8:35 AM EST.
Meta, the parent company of Facebook and Instagram, is planning to lay off thousands of employees as soon as this week, according to sources familiar with the matter, Yahoo Finance reported. The layoffs come only a few months after Meta slashed 11,000 workers in what was its first-ever major layoff back in November. Meta shares gained 1.7% in premarket trading on Tuesday, as the stock has climbed 54% since the start of the year on Monday’s close.
AAA is warning drivers to prepare for higher gas prices, as WTI crude (West Texas Intermediate), the benchmark, is trading near $80 a barrel, an increase of $4 from a week ago and $6 higher than a month ago. If the market believes fuel demand will increase, it’s likely to drive the cost of crude up, driving higher prices at the pump, according to AAA, East Idaho News reported. As of Tuesday, March 7, the national average for a gallon of regular unleaded gasoline stood at $3.417, per the AAA gas prices tracker. California had the highest gas prices in the nation at $4.912.
Federal Reserve Chairman Jerome Powell will be in the spotlight on Capitol Hill this week as he will face scrutiny from Congress over the central bank’s continued interest rate increases in the ongoing battle to reel in stubborn inflation.
“Raising interest rates certainly won’t stop big corporations from exploiting all of these crises to jack up prices far beyond the increase in their cost,” Banking Committee Chair Senator Sherrod Brown (D-OH) said, referring to the burden rate hikes are putting on everyday Americans, according to early excerpts, FOXBusiness reported.
A drastic decline in home prices is being forecast, and in four cities, they could drop by double-digit figures, according to the latest projections by analysts at Goldman Sachs, FOXBusiness reported. By the end of 2024, home prices could plunge by 19% in Austin, 16% in Phoenix, 15% in San Francisco, and 12% in Seattle. The factors affecting the cities center around large increases in inventory where supply is outpacing demand.
Walmart announced it is permanently closing all of its locations in Portland after a historic increase in thefts at its stores due to rising crime in the area, as well as homeless camps. Walmart has already closed most of its Portland stores and said it will shutter its last two remaining stores on March 24, the Daily Mail reported. The company added that stores in Portland were not meeting financial expectations.
