Stock market today: Dow, S&P 500, Nasdaq futures slip with Fed rate cut seen as done deal
US stock futures edged lower on Friday as Wall Street took stock of the US economy from a lofty, record-setting perch ahead of the Federal Reserve’s highly anticipated decision on interest rates next week.
Dow Jones Industrial Average futures (YM=F) and S&P 500 futures (ES=F) both fell roughly 0.2%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) slipped just below the flat line. All three major indexes rallied to records on Thursday, with the Dow (^DJI) closing above 46,000 for the first time.
Investors have taken in several weeks’ worth of economic data to gain clues on the Fed’s next move. Over the last week, jobs data has shown clear signals of labor market weakness, with just over 20,000 jobs added last month and initial jobless claims surging to a near four-year high.
Meanwhile, inflation remains stubborn, with consumer prices rising last month amid more signs that President Trump’s tariffs are filtering their way into the economy. But investors are betting inflation is tame enough for the Fed to cut next week — and then some.
Traders are pricing in a more than 90% chance of a quarter-point cut when the Fed holds its September meeting. Beyond that, around 80% expect the central bank to cut the equivalent of three times before the end of the year.
Read more: The latest on Trump’s tariffs
Along with stocks, Treasuries rallied on Thursday. The 10-year yield (^TNX) fell to near 4%, around its lowest levels of the year, but recovered slightly on Friday. The 30-year yield (^TYX) ticked up to 4.67%, having dropped below 4.65% the previous session and after touching 5% last week. Meanwhile, gold (GC=F) notched fresh records.
The lead-up to the Fed in the next few days will likely be quieter. But Friday brings an initial reading of consumer sentiment this month from the University of Michigan. Though most signals point to consumer spending holding steady, Americans are souring on their purchasing power — and on the job market as a whole.
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