Dow futures fall 300 points as Wall Street sell-off continues

Stock futures were lower on Friday morning as investors continued to exit stocks until the end of the year on fears of a recession next year due to relentless rate hikes by the Federal Reserve.

Futures linked to the Dow Jones industrial average lost 329 points, or 1%. S&P 500 futures fell 0.94% and Nasdaq-100 futures fell 0.49%.

Recession-sensitive stocks fell in pre-market trading on Friday GM And caterpillar More than 1% each.

Meanwhile, Olive Garden-parent shares Tartan Restaurants Slightly higher in the premarket After reporting earnings that topped the ratings.

Those moves follow a rough day for markets. The Dow fell 764.13 points, or 2.25%, on Thursday for its worst daily performance since September. The S&P 500 and Nasdaq Composite fell 2.49% and 3.23%, respectively.

Thursday’s disappointing retail sales report Investors fueled fears that consumer spending is slowing amid rising inflation, a sign the economy is weakening.

With these recent declines, the indices are poised for a second consecutive week of losses. The S&P 500 is off 1% for the week and 4.5% for the month of December.

Trading can be particularly volatile Friday, with a high volume of options expirations. According to Goldman Sachs, $2.6 trillion worth of index options have expired.

Following this, the stock has seen a decline this week Federal Reserve raises interest rates by 50 basis points Wednesday – the highest rate in 15 years. The central bank said it would raise rates to 5.1% through 2023, a bigger figure than previously expected.

“Stock traders are experiencing indigestion after they were drawn in by hopes for the Fed’s centralization. [Wednesday’s] The FOMC report reiterated Jerome Powell’s theme of ‘bullish for the long run,'” said John Lynch, chief investment officer at Comerica Wealth Management.

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They’ll be looking for notes on future Fed policy from John Williams, Michael Bowman and Mary Daly. Investors are trying to gauge the pace of future rate hikes and the central bank’s view on the economy.

Data will follow in the morning along with purchasing managers’ indices for December in services and manufacturing.

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