Stock futures fell on Friday morning as investors continued to dump year-end stocks amid fears of a recession next year due to the Federal Reserve’s relentless interest rate hikes.
Futures contracts linked to the Dow Jones Industrial Average lost 358 points, or 1.07%. S&P 500 futures were down 1.01% and Nasdaq-100 futures were down 0.56%.
Stocks that would have stagnated in pre-market trading on Friday, with shares of GM And the Larva Each discount is more than 1%.
Meanwhile, Olive Garden-parent stock Darden Restaurants It went up a bit in Primarkt After reporting profits that exceeded estimates.
The moves come on the heels of a rough day for the markets. The Dow fell 764.13 points, or 2.25%, on Thursday, its worst daily performance since September. The S&P 500 and Nasdaq Composite fell 2.49% and 3.23%, respectively.
Disappointing retail sales report on Thursday It sparked investor concerns about slowing consumer spending amid rising inflation, a sign of a weak economy.
With these recent declines, the indices are preparing for a second consecutive week of losses. The S&P 500 is down 1% for the week and 4.5% for the month of December as hopes of a year-end rally fade.
Trading can be particularly volatile on Friday with a large number of options set to expire. There are $2.6 trillion worth of index options set to expire, the highest amount “relative to stock market volume in nearly two years,” according to Goldman Sachs.
Stocks have been dropping this week in wake Raising the Fed interest rate by 50 basis points On Wednesday – the highest rate in 15 years. The central bank said it will continue to raise interest rates through 2023 to 5.1%, a larger figure than previously expected.
“After being so hopeful on the Fed pivot, stock traders are having indigestion [Wednesday’s] John Lynch, chief investment officer at Comerica Wealth Management, said the FOMC statement, which reiterated Jerome Powell’s “higher for longer” theme.
They will also be looking for any hints about future Fed policy from speakers John Williams, Michelle Bowman and Mary Daley. Investors are trying to gauge the pace of future rate hikes and the central bank’s view of the economy.
Data will also be released in the morning with December PMIs in services and manufacturing.
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