FOMC minutes reflect concern about high inflation
U.S. stock futures were under pressure early Thursday following the release of minutes of the Federal Reserve’s Jan. 25-26 policy meeting and new developments in the Russia-Ukraine conflict.
According to the minutes released by the Fed on Wednesday afternoon, policymakers last month agreed that it was time to hike interest rates, with employment strong and inflation soaring to record highs.
Most policymakers agreed that they would support faster interest rate hikes “if inflation does not move down” as they expect.
The minutes also indicated that the central bank was still comfortable with ending its pandemic-era asset-buying program in March, not earlier.
But the policymakers agreed that any decisions would be based on a meeting-by-meeting analysis of inflation and other economic data.
As of 5:25 a.m. ET, futures for the blue-chip Dow tumbled 153 points, or 0.44% to 34,698. S&P 500 futures dropped 22.5 points, or 0.5% to 4,447 while the tech-heavy Nasdaq 100 futures gave away 93.5 points, or 0.64% to 14,506.5.
Crude futures slide with Russia-Ukraine tensions and Iran nuclear talks in focus
In energy markets, crude futures were also falling as traders continued to monitor the Russia-Ukraine crisis.
On Wednesday, multiple media reports quoted a senior White House official as saying that Russia has sent an additional 7,000 troops to the Ukrainian border in recent days.
The official said that the increase proves that Russia’s claim that it is withdrawing troops away from the border is “false.”
Meanwhile, the U.S. is reportedly in “the midst of the very final stages” of indirect talks with Iran, aimed at reviving a 2015 nuclear agreement that could pave the way for more oil supply on global markets and send prices lower.
U.S. West Texas Intermediate (WTI) crude futures were marked $2.27, or 2.42% lower to $91.39 a barrel at 5:35 a.m. ET. Global Brent crude futures dropped $2.15, or 2.27% to $92.66 a barrel.
Activist investor nudges Hasbro to spin off Wizards of the Coast division
Hasbro (NASDAQ: HAS) is reportedly under pressure from one of its shareholders to spin-off one of its divisions.
According to Cara Lombardo of the Wall Street Journal, activist investor Alta Fox Capital Management LLC is calling for Hasbro to make changes to its current business strategy and spin off its lucrative Wizards of the Coast unit.
Alta Fox currently owns a 2.5% stake in Hasbro, valued at around $325 million. The investor hopes that by spinning off the business, the share price –which is lower than it was five years ago – will rebound.
Additionally, Alta Fox has nominated five directors for election to the Hasbro board.
In a letter seen by the Journal, the board games and toys company said it has met with Alta Fox and plans to review its nominees in due course.
As of writing, Hasbro stock was up $4.36, or 4.49% to $101.4 per share in the premarket trading session on Thursday.
