Futures signal more selling on Wall Street -Breaking
(Reuters) – U.S. stock futures dropped on Thursday with declines in growth stocks as investors worry that aggressive increases of interest rates to reduce decades-high inflation will lead to a recession.
Megacap stocks Meta Platforms Microsoft Corp Premarket trading saw a drop of 1% to 2.1% for Alphabet, Google’s owner (NASDAQ) Inc and Apple Inc (NASDAQ) respectively.
Chipmakers Intel Corp (NASDAQ) Advanced Micro Devices, (NASDAQ) Nvidia (NASDAQ) Corp declined between 0.7% to 1.8%
After data revealed that U.S. consumer costs declined in April, the tech-heavy fell more than 3 percent on Wednesday. Year-to-date losses are now at 27.4%. The Federal Reserve is expected to keep its foot on the gas to cool down the demand.
Wall Street’s rallies from 2020 pandemic lows have been accompanied by a decline in growth stocks. Their valuations and returns were discounted when rates rise, so they are feeling the pinch.
This year’s growth index is down 25.6%, compared with an 8.4% drop in its value counterpart, which includes economy-sensitive areas like energy and banks.
Now, the U.S. producer prices index (PPI) and weekly jobless claims numbers at 08.30 am will dominate. ET.
Traders project a 63% likelihood of Fed hiking interest rates by 75 points in June. [IRPR]
At 06:41 AM. ET were down by 166 points or 0.52%. They were also down 26.25 point, or 0.677%. And they were down 133.75 percent, or 1.12%.
Walt is one of the stocks. Disney (NYSE:) Co slid 4.8% after its second-quarter revenue and profit fell short of estimates and the entertainment giant cautioned supply chain disruptions and rising wages could pressure finances.
Beyond Meat (NASDAQ) Inc, a plant-based protein producer, slumped by 24.2%. The company was due to open lower than its IPO prices as quarter losses ballooned.
Rivian Automotive Inc rose 2.7% following the company’s 2022 goal of producing 25,000 units.