U.S. equity futures rose in choppy trading after a rocket strike inside the Polish border reminded investors of the potential for escalation in the Russia-Ukraine war, though the euro and the Polish zloty recouped earlier knee-jerk losses.
The Associated Press cited unnamed U.S. officials as saying initial findings pointed to the projectile being fired by Ukrainian forces at an incoming Russian one. Stocks have surged in the past week as softer-than-expected U.S. inflation data has raised expectations the Federal Reserve may be able to slow down its rate-hiking pace. The data has pushed the dollar and Treasury yields lower, while a raft of strong company earnings have added to markets’ ebullience.
Asher, who sees the moves as overdone, predicted more volatility ahead. U.S. retail sales and housing market data due later on Wednesday may offer more clues on the state of the U.S. economy.