US Stocks Poised For More Pain On Friday As Nasdaq, S&P 500 Futures Plunge — Recession Worries Take Hold After Fed Rate Hike

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ZINGER KEY POINTS

  • U.S. stocks appear on track for a significant weekly loss following Fed’s rate hike.
  • Recession worries are working in the minds of traders, forcing them to gravitate toward safe havens.

The major U.S. index futures are sharply lower on Friday, signaling that stocks could fall for a fourth straight session in the aftermath of the Fed decision. The markets are staring at the possibility of ending the week with significant losses.

Stocks fell yet again on Thursday, with the selling particularly severe among consumer discretionary, financials, IT and material stocks — while financial stocks found some buying interest.

The sharp rise in the two-year and 10-year bond yields following the 75-basis-point Fed move drove investors away from equities.

U.S. Indices’ Performance On Thursday

IndexPerformance (+/-) Value
Nasdaq Composite-1.37% 11,006.81
S&P 500 Index-0.84% 3,757.99
Dow Industrials-0.35% 30,076.68

Here’s a peek into index futures trading:

IndexPerformance (+/-) 
Nasdaq 100 Futures-1.48% 
S&P 500 Futures-1.36% 
Dow Futures-1.25% 
R2K Futures-1.74% 

In premarket trading on Friday, the SPDR S&P 500 ETF Trust was down 0.85% to $371.03, and Invesco QQQ Trust was down 1.01% to $277.23, according to Benzinga Pro data.

On the economic front, the S&P Global manufacturing, services and composite purchasing managers’ indices for September are due at 9:45 a.m. EDT. The manufacturing PMI is expected to slip from 51.5 in August to 51.1, while the services PMI may have increased from 43.7 to 45.

Fed Chair Jerome Powell is scheduled to speak at 2 p.m. EDT. He is set to give opening remarks at the “Fed Listens: Transitioning to the Post-pandemic Economy” event.

Stocks In Focus

  • Cruise line stocks such as Carnival Corporation & plc CCLNorwegian Cruise Line Holdings Ltd. NCLH and Royal Caribbean Cruises Ltd. RCL were all notably lower.
  • Tesla, Inc. TSLA was adding on to its previous session’s losses.
  • Netflix, Inc. NFLX could be in the spotlight after a Wall Street Journal report said the company could be paying less for some comedy specials in newly-negotiated deals.

Commodity, Global Markets

Crude oil futures, which staged a modest recovery on Thursday, are down over 3.5% due to expectations of muted demand amid an uncertain economic environment.

Asian stocks fell across the board, dragged lower by the extended slide seen in their Wall Street counterparts. The Japanese market are closed for a public holiday.

The European markets are trading notably lower amid economic worries. The euro and the pound are taking a beating, with the latter also reacting to the new U.K. government’s economic policy announced at the House of Commons on Friday.

Originally Posted September 23, 2022 – US Stocks Poised For More Pain On Friday As Nasdaq, S&P 500 Futures Plunge — Recession Worries Take Hold After Fed Rate Hike

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