The United States stock index futures have declined, a sign that the Standard & Poor’s 500 index will have a big climb within the week, due to investors looking at the Federal Reserve’s attempt to provide assistance for the economic recovery of the country.
Bank of America Corp, the country’s largest bank, has decreased by 2.2% in Germany’s trading. Citigroup Inc was down by 0.7% and Goldman Sachs Group Inc was down by 0.8%.
Futures on Standard & Poor’s 500 index that are due in September have gone down by 0.7% to 1,150.2 in the morning trading in London. Dow Jones Industrial Average futures that are due in September have declined by 78 points or 0.7% to 11,063.
The S&P 500 was up by 3.4% the day before due to investors hoping that the Federal Reserve will finally step in to boost economic growth in the United States.
According to Henrik Drusebjerg from Nordea Investment Management, “Some investors are worried Bernanke might not hint an intervention after all, but the other option is that he says something and that it doesn’t work. There’s a big question mark as to whether QE3 will actually do any good for the real economy.”
Durable goods orders, not including transportation equipment, have gone down by 0.5% in July following a 0.4% increase in June, according to an estimate from a group of economists surveyed by Bloomberg. They have also estimated that the economy has moved up by 1.1% during the second quarter of the year which is lower than the previous prediction of 1.3%.
Tags: goldman sachs, sachs group inc, transportation equipment, Nordea Investment Management, Dow Jones Industrial Average, previous prediction, S&P 500
