U.S. stock futures fell on Friday, with big selling returning to Wall Street after a one-day respite. The Dow Jones Industrial Average futures lost 297 points, or about 0.6%, while S&P 500 futures shed around 1.1%. Nasdaq 100 futures dropped 1.7%, with tech shares seeing the biggest declines. Shares of Tesla, Nvidia, Palantir, and Dell were all lower in premarket trading.
The decline in stocks came as investors awaited the latest reading of the Federal Reserve’s favorite inflation gauge, the personal consumption expenditures price index, which was due to be released on Friday. The report takes on added significance after Fed Chair Jerome Powell indicated this week that the Fed would cut interest rates fewer times next year in part because of stubborn inflation.
The Fed’s outlook was the catalyst for the market’s plunge on Wednesday, and analysts expect the PCE price index to rise 0.2% on the month and show an annual reading of 2.5%. Core inflation, which excludes food and energy, is also expected to rise 0.2% on a monthly basis and 2.9% annually, above the Fed’s 2% target.
The failure of a Trump-endorsed House Republican measure to fund the government for three months and avert a government shutdown also weighed on sentiment. A partial shutdown is slated to start Friday night if a deal is not reached.
The Dow is down 3.4% on the week, headed for its worst weekly performance since March 2023. The S&P 500 and Nasdaq are each off around 3% on the week. The 10-year Treasury yield popped above 4.5% this week, also weighing on equities.