Stock futures edged higher after Thursday’s broad sell-off

Ed Yardeni says investors shouldn't panic, bear markets still have a chance

Stock futures edged higher Thursday evening after a sharp sell-off pushed the S&P 500 to a fresh 2022 low.

S&P 500 futures rose 0.26%. Dow Jones Industrial Average futures rose 0.17%. Nasdaq 100 futures rose 0.14%.

The 2022 sell-off resumed in full in regular trading on Thursday as investors weighed concerns about the Federal Reserve’s future decision to raise interest rates and the impact on the market.

Apple led losses on Thursday, closing down 4.9 percent as the tech giant faced reports of falling demand for its new products, particularly the iPhone 14 lineup. Bank of America also downgraded the tech giant, weighing on shares.

The S&P 500 fell 2.1% to 3,640.47 at the end of regular trading on Thursday. The Dow fell 1.54% to 29,225.61, while the Nasdaq Composite lost 2.84% to 10,737.51.

Major stock indexes are also on track for sharp losses this week and into September. The S&P 500 lost 1.4% for the week, while the Dow and Nasdaq both lost 1.2%. In September, the S&P 500 fell 7.9% and the Dow fell 7.2%. The Nasdaq is on track to drop 9.1% for the month.

“The market stinks,” said Jamie Cox, managing partner at Harris Financial Group. “But that’s basically what the Fed wants: Tighter financial conditions, which they think will help bring inflation down to what they think is acceptable. They’re using the market’s transmission mechanism to do that.”

Nike shares fell in after-hours trading after the company reported higher sales, but supply chain and inventory issues hampered its fiscal first-quarter profit. Meanwhile, shares of Amylyx Pharmaceuticals surged after the U.S. Food and Drug Administration approved its drug for Lou Gehrig’s disease.

On the economic data front, investors will focus on personal income and spending and consumer spending Friday morning. The Fed’s favorite inflation gauge, the PCE deflator, is also due in August.

Source link