24.05.202214:01 Forex Analysis & Reviews: Stock market sell-off continues

S&P 500 futures plunged amid fears that the Federal Reserve's tightening could hurt economic growth ahead of Wednesday's FOMC minutes.

Tech shares were among the worst performers in Stoxx50. Nasdaq 100 futures dropped more than 2%, while Chinese technology stocks were up by more than 4%.

Technology stocks came under pressure after Snap warned investors that a 'deteriorating' global economy will hammer the group's near-term profits. Snap shares were marked 30% lower after the close, while Meta Platforms Inc. and other companies that rely on digital advertising also plummeted. Investors have not paid enough attention to technology stocks this year because of rising interest rates and soaring inflation.

Utilities and travel and leisure stocks were also among the losers in Europe as well. On Tuesday, Drax Group Plc, Centrica Plc and SSE Plc stocks slumped after a report on plans for a possible windfall tax on power generators. Air France-KLM plunged as it plans to sell around €2.26 billion ($2.4 billion) of new shares to shore up its balance sheet.

Equities have been volatile as investors assess the outlook for monetary policy, inflation and the impact of China's strict Covid-19 policies on the global economy. Minutes on Wednesday of the most recent Fed rate-setting meeting will give markets insight into the US central bank's tightening path.

Federal Reserve Bank of Kansas City President Esther George said she expected the central bank to raise interest rates to 2% by August this year, with further tightening dependent on inflation.

"That is a big risk that the Fed doesn't get the big economy signals and keep marching along with a very aggressive tightening program," Allspring Global Investments senior portfolio manager Margaret Patel said. "But if they look at the real world out there, they will see it's time to take a big pause," she added.

Key events this week: S&P Global PMI, New Home Sales, Durable Goods Orders, FOMC minutes, Initial Jobless Claims, Gross Domestic Product (GDP), Core Personal Consumption Expenditure (PCE), and Michigan Consumer Sentiment Index (CSI).