Friday morning saw a decline in U.S. stock futures as investors anticipated the release of crucial inflation data.
Futures for the Dow Jones Industrial Average dropped 141 points, or 0.4%. Futures for the S&P 500 and Nasdaq 100 fell 0.5% and 0.9%, respectively.
At 8:30 a.m. ET, the core personal consumption expenditures price index, the Fed’s preferred gauge of inflation, will be released. According to Dow Jones, economists anticipate an increase of 0.5% from month to month.
Investors are also anticipating the January data on personal income and consumer expenditure, which are both scheduled to be released on Friday before the bell and will provide more information about the American consumer.
In line with consensus projections from Dow Jones, personal income is anticipated to have increased 1.2% last month. This is a rise from the previous month’s gain of 0.2%. In January, consumer expenditure is anticipated to increase 1.4%, up from a decrease of 0.2% in December.
After Boeing temporarily stopped shipping its 787 Dreamliners due to a fuselage issue, its shares fell more than 2%.
The S&P 500 increased by 0.53% on Thursday. The Nasdaq Composite rose 108.82 points, or 0.33%, while the Dow Jones Industrial Average
rose 0.72%.
Yet, a losing week is expected for the key averages. By Thursday, the S&P 500 was down 1.64%, and it is projected to have its worst week since December 16. The Dow is set for its fourth consecutive losing week as it is down about 1.99% this week. The Nasdaq is down 1.67% and is expected to have its second down week in three weeks.
In light of conflicting economic indications, investors are nonetheless concerned about the rate of future interest rate increases. Despite chronically high inflation, the American consumer has remained resilient.
“We’re still staring down the barrel of a gun that hasn’t grasped what the consumer may or may not have strength for in the next months, and what earnings will do in the coming months. Liz Young from SoFi commented on the stock market’s “overconfidence” on Thursday’s “Halftime Report” on CNBC.
Source (CNBC)
