Stocks Slump, Biden Gas Tax Plea, Powell Testimony, Boeing, and Roxe - Five Things to Know

Stocks Slump, Biden Gas Tax Plea, Powell Testimony, Boeing, and Roxe - Five Things to Know ...

On Wednesday, June 22, here are five things you must know:

Stock Futures are depreciating as inflation mounts.

Equity futures in the United States fell significantly on Wednesday, despite retaliating the majority of yesterday''s significant gains, as investors focused on the effects of rapid inflation on global economic growth.

Fresh inflation surveys from South Africa to Great Britain indicated that central bank action, at least to date, has little influence on consumer price pressures, while looking into the findings showed a broadening of their effects, particularly in the United Kingdom.

The prospect of slower growth for the world''s major economies was correlated with a weaker season for Asia stocks, which fell drastically due to concerns about a fresh round of Covid restrictions. That increased the US dollar in overnight trading and imposed the "risk-off" narrative that cut futures.

The debate over the recession in the United States has grown as well, followed data from the Atlanta Fed showing essentially no growth in the national economy this quarter, followed by a 0.5 percent drop in weekly joblessness, a decreased consumer spending, and a weakening housing market.

The region-wide Stoxx 600 was marked 1.55% down in early Frankfurt trading, followed by a 2.3 percent drop for Asia''s MSCI ex-Japan benchmark.

The benchmark 10-year Treasury bond rates in the United States increased by 2.62% in overnight trading, compared to a 3.153% peg for 2-year notes, while the dollar index improved by 0.20% from a basket of six global currencies to 104.64.

Futures tied to the Dow Jones Industrial Average are indicating a 360-point opening bell fall on Wall Street, while those linked to the S&P 500, which has fallen 21% for the year, are priced for a 54-point decline.

Futures linked to the tech-focused Nasdaq are looking at a 195 point opening bell pullback.

2. -- President Biden has called for a federal gas tax holiday.

President Joe Biden said Wednesday that he would ask Congress to suspend the federal gas tax for at least three months, while requesting similar reliefs, in order to reduce a key component of domestic inflation in the world''s largest economy.

Unleaded pump prices are rising by around 18.4 cents per gallon, with 24.4 cents to diesel, owing to revenue used in part to fund highway and infrastructure projects.

The widely anticipated move affected global oil prices in overnight trading, fueled by recent Covid infections in China, and the possibility of further business and factory restrictions, with WTI crude futures for August delivery falling $4.97 to $104.55 per barrel.

According to AAA''s data, gas prices in the United States decreased from this week''s all-time high to a national average of $4.955 per gallon last night, despite a drop in pump prices, which was still 61.8% higher than this time last year.

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3. -- Fed Chair Jerome Powell is facing Capitol Hill grilling on inflation.

Jerome Powell of the Federal Reserve will begin two days of testimony on Capitol Hill Wednesday, as well as a likely grilling from legislators. As inflation continues to grip both global financial markets and mainstream US politics.

A follow-on discussion will be held before the House Financial Services Committee Thursday, amid the fastest rate of domestic inflation in more than four decades, and just four months ahead of the key mid-term election that might see Republicans regain control of both Houses of Congress.

Lawmakers are likely to pressure the Fed Chair on his previous assertion that inflation pressures would be''transitory,'' while also seeking clarification on how or even if the current strategy of interest rate rises and liquidity withdrawal will slow the pace of increasing inflation pressures.

Powell''s latest change-of-heart, which saw the Fed Chair orchestrate a 75 basis point rate hike last week, which essentially led markets to a 50 basis points increase, will also be in focus during today''s testimony, as well as the impact of rate rises on broader GDP. This has raised the possibility of a near-term recession.

"We''re not trying to enter a recession right now. Let''s be clear about that," Powell told reporters in Washington lats week. "We''re working to get 2 percent inflation compatible with a robust labor market. That''s what we''re trying to do.

Boeing''s stock has dropped as CEO Cautions on Supply Chain Challenges.

Reportshares, a Boeing company, has been dropped in pre-market trading as the planemaker warned that supply chain disruptions will likely continue until at least the end of next year.

CEO Dave Calhoun said airline demand is increasing as a result of a sharp rise in post-pandemic travel, but labor and part shortages will result in problems for suppliers.

"The shift from demand to now supply concerns" has been (has) remarkable," Calhoun said. "It''s been a real issue for both manufacturers, and I''ll likely keep it until the end of next year," the narrator said.

As it prepares for major summer air shows in Paris and Berlin, Boeing reported 29 737 MAX jet deliveries for the month of May, with total deliveries of 35 aircraft. Calhoun describes the demand for aircraft as "a lot of robust" as it had ever experienced it.

The overall order backlog of the aircraft manufacturer has been dragged down by 4,192 aircraft, according to Boeing. This is unusually similar to the same time last year.

Boeing shares were slightly down in premarket trading, indicating an opening bell price of $134.00 each, a move that would extend the stock''s year-to-date decline to 33%.

Roxe, a blockchain payment company, is planning a merger with Nasdaq SPAC.

Roxe, a blockchain payments company, is planning to go public through a merger with SPAC groupGoldenstone Acquisition, which is worth $3.6 billion.

Roxe stockholders investing all of their profits into the newly-named business Roxe Holding Group - that will trade on the Nasdaq during the merger.

Roxe, which was established in 2019, has partnered with banks and other payment companies with its own digital tokens.

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