Stock futures fell on Friday morning as investors responded to data that added to fears of a looming recession and looked forward to a slew of Fed speakers scheduled for later in the day.
Futures related to the Dow Jones Industrial Average lost 112 points, or 0.34%. S&P 500 futures fell 0.27% and Nasdaq-100 futures also fell 0.32%.
Continuing Wednesday’s sell-off, the Dow fell 764.13 points, or 2.25%, for its poor daily performance since September on Thursday. The S&P 500 and Nasdaq Composite fell 2.49% and 3.23%, respectively.
Disappointing retail sales report on Thursday Proposed inflation hits consumers more than expected. This has investors worried about slowing consumer spending, a sign of a weak economy.
With these recent declines, the market is heading into Friday with all indicators poised for a second straight week of losses.
Stocks have been dropping in the wake Raising the Fed interest rate by 50 basis points to a target range of 4.25% to 4.5% — 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.
John Lynch, chief investment officer of Comerica Wealth Management, said, “After inciting hopes about the Fed’s pivot, stock traders are having indigestion from yesterday’s FOMC statement, which reiterated Jerome Powell’s theme of ‘higher for longer.
Investors will be watching Friday before earnings bell from Darden Restaurants, Olive Garden’s parent company, which could provide more insight into consumer spending patterns. 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. Indexes are measures of business conditions. Manufacturing is expected to come in at the same rate as November, while services are expected to rise by 0.3 points.
