US stock futures weaken on key inflation data, as traders weigh whether to extend rate hike
U.S. stock futures slid on Friday ahead of key economic data, as traders weighed whether to extend a rally fueled by hopes the Federal Reserve is nearing an end to the war. strong interest rate hike or not.
What is happening
-
Dow Jones Industrial Average
YM00,
+0.01% futures contracts fell 36 points, or 0.1%, to 33987.
-
S&P 500
ES00,
-0.19% futures contracts fell 13 points, or 0.3%, to 4063.
-
Nasdaq100
NQ00,
-0.42% Futures fell 69 points, or 0.6%, to 12038.
On Thursday, the Dow Jones Industrial Average
DIA,
up 206 points, or 0.61%, to 33949, the S&P 500 rose 44 points, or 1.1%, to 4060 and the Nasdaq Composite
CALCULATOR,
up 199 points, or 1.76%, to 11512.
S&P500
SPX,
up 15% from October’s low.
What is driving the market?
The details of economic data released on Thursday, including gross domestic product and durable goods orders, were weaker than they appeared in the headlines and appeared to be, analysts said. indicates an economy that is deteriorating, if not outright, leading to a recession.
Bill Diviney, senior US economist at ABN Amro, said the GDP report showed the decline in investment was accelerating, while more volatile components such as inventories and government spending boosted investment. Push the power in reporting.
“Given the apparent weakness towards the end of the fourth quarter, as well as the upcoming data for January so far, we continue to expect Q1 GDP to show a decline in output, with our current estimate at annual decrease of about 1%. We expect the decline in output to continue into Q2, which would meet the definition of a technical recession as output falling for two consecutive quarters,” he told clients in a note.
Data released on Friday includes the PCE price index, the Fed’s preferred measure of inflation. The core PCE price index is said to have decelerated to 4.4% year-on-year in December from 4.7% in November. Hann-Ju Ho, an economist at Lloyds Bank, also forecast core PCE at 4.4% and key figure at 4.9%, down from 5.5%, alongside personal spending down 0.2%.
“Such results would reaffirm that inflation is on track to fall and economic growth is slowing, adding to expectations that U.S. interest rates are nearing a peak,” he said. Economists expect the Fed to raise rates by a quarter point next week, but opinions remain mixed on the extent of rate hikes this year.
clever
INTC,
was in the spotlight after the microchip maker missed adjusted earnings and revenue expectations.
