Dow Futures Down 300 Points as Rate Hike Bets Weigh By Investing.com

By Noreen Burke

Investing.com — U.S. stock futures were broadly lower on Monday, as losses on Wall Street looked set to continue after a steep selloff on Friday as expectations for more aggressive rate hikes by the Federal Reserve and the European Central Bank weighed.

At 07:20 ET (11:20 GMT), the contract was down 300 points or 0.9%, traded 43 points or 1.0% lower, and were down 1.3%.

All three main indices on Wall Street ended Friday down around 3% as Fed Chair Jerome Powell indicated that the central bank would as high as needed to tame inflation and keep them there “for some time”.

Meanwhile, ECB board member Isabel Schnabel warned Saturday that central banks must act forcefully to curb inflation even at the risk of tipping economies into recession.

Investors have ramped up bets on U.S. rate hikes, with pricing in a greater chance of a 75-basis point hike from the Fed at its upcoming meeting in late September.

Oil prices were slightly higher as the prospect of production cuts by the Organization of the Petroleum Exporting Countries partially offset the effects of the stronger dollar.

OPEC last week raised the possibility of output cuts, which could help rebalance markets in the event of a possible increase in supply from Iran should it reach a nuclear deal with the West.

futures were up around 0.3% at $93.34 a barrel, while the contract was also up 0.3% at $99.34 a barrel.

Meanwhile, the U.S dollar climbed to a 20-year high on Monday as U.S. Treasury yields spiked, with the , which measures the currency’s value against a basket of peers, hitting a fresh peak of 109.48.