Stock futures were mixed on Friday morning as investors reacted to data that raised concerns about a looming recession and awaited a series of Federal Reserve speakers scheduled for later in the day.
Futures tied to the Dow Jones Industrial Average gained 3 points to trade near a flat line. S&P 500 futures were marginally lower and Nasdaq-100 futures were slightly higher.
In continuing Wednesday’s selloff, the Dow fell 764.13 points, or 2.25%, for its worst daily session since September on Thursday. The S&P 500 and Nasdaq Composite fell 2.49% and 3.23%, respectively.
Thursday’s disappointing retail sales report suggested inflation is hitting consumers harder than expected. This has investors worried that consumer spending is slowing, a sign that the economy is weakening.
With these latest declines, the market heads into Friday with all indexes poised for a second straight week of losses.
Stocks fell after the Federal Reserve raised interest rates by 50 basis points to a target range of 4.25% and 4.5%, the highest in 15 years. The central bank said it would continue to raise interest rates until 2023 to 5.1%, a higher rate than previously expected.
“After pinning hopes on a Fed pivot, equity traders are reeling from yesterday’s FOMC statement, which echoed Jerome Powell’s ‘longer-term’ theme,” said John Lynch, chief investment officer at Comerica Wealth Management.
Investors will watch earnings from Olive Garden parent Darden Restaurants on Friday, which could provide more insight into consumer spending patterns. They will also be looking for any hints on future Fed policy from speakers John Williams, Michelle Bowman and Mary Daley. Investors are trying to gauge the pace of future interest rate hikes and the central bank’s view on the economy.
There will also be data in the morning on December purchasing managers’ indices for the services and manufacturing sectors. Indicators are viewed as gauges of business conditions. Manufacturing is expected to come in at the same pace as in November, while services are expected to grow by 0.3 points.