Futures trade lower after another day of losses following Fed rate hike, sell-off

Peter Boockvar says pace of rate hikes is putting economy and markets in 'dangerous territory'

Stock futures are lower Friday morning, as investors continued to react to Fed rate hikes and concerns about a potential economic downturn.

The Nasdaq 100 fell 0.51%. Dow Jones Industrial Average futures fell 133 points, or 0.44%. S&P 500 futures fell 0.46%.

Costco stock fell about 2.6% in extended trading. While the retailer reported fiscal fourth-quarter revenue and earnings that beat analysts’ expectations, freight and labor costs are rising.

Thursday brought another day of declines as the market remained poised to end the week below where it started. The Nasdaq Composite fell 1.4 percent to 11,066.81. The S&P 500 lost 0.8% to 3,757.99, while the Dow Jones Industrial Average closed down 107.10 points, or 0.3%, at 30,076.68.

With the recent pullback, the Dow has lost about 2.4% this week. The S&P and Nasdaq both edged lower, down 3% and 3.3%, respectively, so far this week.

Bond yields also continued to rise, with 2-year and 10-year U.S. Treasury yields hitting highs not seen in more than a decade.

Industrials, consumer discretionary, growth tech and semiconductors all took a hit on fears of slowing economic growth. Meanwhile, defensive stocks outperformed.

“You’ve just experienced this volatility that no one seems to understand,” said Tim Lesko, senior wealth advisor at Mariner Wealth Advisors.

Following the Fed’s decision this week to raise interest rates by 75 basis points and FedEx CEO Raj Subramaniam, more and more investors are starting to accept that a recession may be coming, Lesko said. Speaking on CNBC last week, he believed it was coming. Once that happens, investors will react differently, Lescoe said.

“At some point, they’ll find out that a recession isn’t the end of the world, and they’ll start having a constructive impact on the stock market again,” he said. “But now, we’re acting like the sky is falling.”

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