Despite a small increase in stock futures on Friday, the market is still expected to close the week with significant losses.
Futures for the Dow Jones Industrial Average increased by 52 points, or 0.2%. S&P 500 futures and Nasdaq 100 futures both increased by 0.3% and 0.5%.
These actions came after a three-day losing streak for all three stock indices as investors reacted to the Federal Reserve’s indication that it expected to maintain higher interest rates for a longer period of time. These extreme levels may put pressure on risky assets like stocks.
The S&P 500 and the heavily weighted Nasdaq Composite in the technology sector are down 2.7% and 3.5%, respectively, this week, on pace for their worst weekly performances since March. They would also be experiencing their third straight bad week. Between now and then, the blue-chip Dow has fallen 1.6%.
The central bank’s prediction of one additional rate increase for 2023 caused bond yields to soar. The benchmark 10-year Treasury yield increased by 15 basis points to reach 4.498%, which is the highest level since 2007. The 2-year rate also increased to 5.2%, its highest level since 2006.