U.S. Stock-Index Futures Slide With Volatility Set to Continue
©2015 Bloomberg News
(Bloomberg) — U.S. stock-index futures fell in early trading with the turmoil seen in August set to continue on the final day of the month.
E-mini contracts on the Standard & Poor’s 500 Index lost 1.1 percent to 1,967.50 as of 7:28 a.m. in Tokyo. Futures on the Dow Jones Industrial Average dropped 1 percent and those on the Nasdaq 100 Index slid 1 percent.
U.S. policy makers at the Kansas City Federal Reserve’s annual retreat in Jackson Hole, Wyoming, had a largely consistent message over the weekend: We’re staying the course. Federal Reserve Vice Chairman Stanley Fischer proclaimed his faith that inflation is poised to move upward. While Fischer was careful to announce that he wasn’t signaling an impending rate increase, the remarks suggested a move wasn’t ruled out when the Federal Open Market Committee gathers in Washington Sept. 16-17.
“Financial markets are vulnerable,” said Stewart Richardson, chief investment officer at RMG Wealth Management in London. “With economic conditions not improving, and in our view probably deteriorating next year, the volatility and stress seen in the last two weeks will happen again, and likely even be worse.”
The S&P 500 is on course for its biggest monthly decline since May 2012, down 5.5 percent amid a volatile month.
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