Stock market today: Dow, S&P 500, Nasdaq futures slide after bruising sell-off as rate-cut doubts creep in
US stock futures fell on Friday after Wall Street’s sharpest sell-off in over a month, as investors jumped out of techs amid ebbing faith in a December interest-rate cut.
Dow Jones Industrial Average futures (YM=F) shed 0.1%, while those on the S&P 500 (ES=F) dropped 0.3%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) sank 0.5%.
Stocks are poised to build on Thursday’s bruising session, which saw the major indexes log their steepest one-day declines in over a month. The Nasdaq Composite (^IXIC) led those declines as heavyweights Nvidia (NVDA), Broadcom (AVGO), and Tesla (TSLA) all tanked.
Rising concern that the Federal Reserve won’t cut interest rates at its December meeting has spurred a retreat from stocks, amid continued debate over high Big Tech valuations and a potential AI bubble. Traders now see a roughly 52% chance of a quarter-point rate cut next month, down from nearly 63% a day earlier and more than 95% a month ago.
In recent days, a wave of Fed officials have delivered more hawkish commentary, with Minneapolis Fed President Neel Kashkari saying recent data has shown “more of the same” resilience in the economy, suggesting he could view a rate hold as the best option. He said, however, that “I can make a case” for either option.
Meanwhile, the end of the six-week government shutdown proved only a slight tailwind for markets, even as it lifted the brake on official data reports. Questions remain as to what data will end up being released — and in what form it will be unveiled — now that the government has reopened.
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