The European Central Bank Just Helped U.S. Stock Investors
Investors on Wall Street came in Thursday morning in a downbeat mood, and the stock market seemed to reflect the high levels of uncertainty about the macroeconomic picture. Futures had been up much of the morning, but they gave up gains after the release of economic data showing a rise in unemployment claims over the past week. As of 9 a.m. ET, futures on the Dow Jones Industrial Average (DJINDICES: ^DJI) were down 28 points to 32,861. S&P 500 (SNPINDEX: ^GSPC) futures had fallen 5 points to 4,109, and Nasdaq Composite (NASDAQINDEX: ^IXIC) futures had lost 28 points to 12,588.
U.S. investors are painfully aware of just how hawkish the Federal Reserve has become on the interest rate front, as the central bank tries to respond to inflationary pressures. However, there hasn't been as much discussion about the Fed's counterparts in Europe following suit. On Thursday morning, investors finally got some clarity from the European Central Bank, which now intends to move forward in a similar direction to what the Fed has already done. Although that confirms that high inflation is a global phenomenon, it's also good news for some U.S. companies that have been at a growing competitive disadvantage for a while.
Image source: Getty Images.
Source Fool.com
