"Futures are trading lower after a big-time risk-off Friday, in which all major indices declined, as Thursday's selling carried through. The combination of end-of-month profit-taking, the announcement of President Trump's pick, Kevin Warsh, to be the next Chairman of the Federal Reserve, concerns about the direction of monetary policy with his appointment, and a massacre of precious metals all helped to drive share prices lower on Friday, with the weakness in the metals carrying through to today."
"Yields were mixed across the Treasury curve as the market digested the news that Kevin Warsh was being tapped as the next Federal Reserve Chairman. Wall Street reportedly prefers the pick because they believe Mr. Warsh, a former Federal Reserve governor, will preserve the Federal Reserve's independence and integrity while maintaining a strong stance on inflation. The 30-year bond closed at 4.88% on Friday, while the 10-year note was last at 4.25%."
"The energy complex took a slight breather, though it still rose on Friday after a solid week in which both benchmarks soared. Concerns over a potential armed conflict with Iran kept a strong bid under the sector. Brent crude finished Friday up 0.46% at $69.91, while West Texas Intermediate climbed 0.54% to end the week at $65.77. Natural gas, which has been literally and figuratively on fire, closed Thursday up 11.38% at $4.36."
Equity futures weakened after a risk-off Friday that extended Thursday's selling, with major indices falling and the Nasdaq down 0.94% at 23,461. End-of-month profit-taking, the selection of Kevin Warsh as the next Federal Reserve Chairman, and a sharp decline in precious metals pressured stocks. The Producer Price Index for final demand rose 0.5% month-over-month and 3.0% year-over-year, indicating persistent inflation. Treasury yields were mixed as markets absorbed the Warsh appointment; the 30-year closed at 4.88% and the 10-year at 4.25%. Energy prices rose after a strong week, with Brent at $69.91, WTI at $65.77, and natural gas surging to $4.36.
Read at 24/7 Wall St.
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