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US stock futures tumble after Wall Street’s worst week since January

U.S. stock index futures fell on Sunday after Wall Street’s worst week since January.

Futures contracts Dow Jones Industrial Average YM00,
fell about 300 points, or 1%, at midnight Eastern time, while S&P 500 ES00 futures,
and Nasdaq-100 NQ00 futures,
experienced even steeper declines.

Prices for bitcoin and other cryptocurrencies also slipped over the weekend, with bitcoin BTCUSD,
falling below the $26,000 level at its lowest point in 18 months, and more than 60% from its all-time high reached last November. CL.1 crude price,
dived on Sunday too.

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Shares ended sharply lower on Friday. The Dow DJIA,
fell 880 points, or 2.7%, to close at 31,392.79; the S&P 500 SPX,
slipped 116.96 points, or 2.9%, to end at 3,900.86; and the Nasdaq Composite COMP,
fell 414.20 points, or 3.5%, to end at 11,340.02.

For the week, the Dow Jones fell 4.6%, the S&P 500 plunged 5.1% and the Nasdaq fell 5.6%. It’s the biggest weekly loss since January for all three major benchmarks, according to Dow Jones Market Data.

Lily: Stocks Crash Again as Rising Inflation Sends Market Shockwaves: What Investors Need to Know

Markets fell on renewed inflation concerns as a new report showed warmer-than-expected readings. Friday’s consumer price index showed US inflation rose 1% in May, well above the 0.7% monthly rise predicted by economists polled by The Wall Street Journal. The year-over-year rate rose 8.6%, topping the 40-year high of 8.5% seen in March.

Federal Reserve policymakers are due to meet this week and are expected to raise interest rates by 50 basis points, although some economists believe that after Friday’s CPI report there could be support for a more aggressive hike of 75 basis points.

Also see: ‘Doves don’t exist on the FOMC right now’: Economists expect hawkish Fed meeting this week

“May’s US CPI was a nightmare for risky markets,” Stephen Innes, managing partner of SPI Asset Management, wrote on Sunday. “The market now thinks a lot more about the Fed raising rates sharply to get inflation under control and then cutting back as growth falls.

This will leave traders and investors “to deliberate on how much further tightening central banks will be able to provide and, therefore, how much higher yields go from here.” And we all know that nothing good happens when interest rate volatility increases in capital markets,” he said.

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