Stock futures were lower on Friday morning as investors reacted to data that raised concerns about the recession and looked ahead to a number of Federal Reserve speakers scheduled for later in the day.
Futures linked to the Dow Jones industrial average lost 112 points, or 0.34%. S&P 500 futures fell 0.27% and Nasdaq-100 futures fell 0.32%.
Following Wednesday’s selloff, 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 Inflation hits consumers harder than expected. Investors worry that this is slowing consumer spending, a sign that the economy is weakening.
With these latest declines, the market heads into Friday as all indices are poised for a second consecutive week of losses.
Stocks fell in response Federal Reserve raises interest rates by 50 basis points A target range of between 4.25% and 4.5% – 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.
“After pulling themselves together on hope for a Fed pacing, equity traders are feeling indigestion from yesterday’s FOMC report, which reiterated Jerome Powell’s ‘higher for the long term’ theme,” said John Lynch, chief investment officer at Comerica Wealth Management.
Investors will look to Friday’s pre-bell earnings call from Olive Garden’s parent Tartan Restaurants, which will provide more insight into consumer spending patterns. 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. The indices are seen as measures of business conditions. Manufacturing is expected to come in at the same rate as in November, while services are expected to increase by 0.3 points.