The Nasdaq logo is displayed at the Nasdaq market location in New York, the United States, May 2, 2019. REUTERS/Brendan McDermid
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- Futures down: Dow 0.28%, S&P 0.38%, Nasdaq 0.61%
June 3 (Reuters) – US stock index futures fell on Friday after Tesla CEO Elon Musk said he had a “super bad feeling” about the economy, fueling new worries that aggressive fiscal tightening could take place Monetary policy by the Federal Reserve could plunge the economy into recession.
Tesla Inc (TSLA.O) shares fell 3.4% in premarket trading after Musk said he plans to cut about 10% of jobs at the electric carmaker, warning in an email to executives seen by Reuters , before the economy. Continue reading
The tech-heavy Nasdaq 100 futures turned negative and was last down 79.25 points, or 0.61%.
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“Musk tends to say exactly what he thinks and believes, and he’s quite right,” said Fiona Cincotta, senior financial markets analyst at City Index.
“Although the Fed thinks a soft landing is a possibility, I think there are some warning signs in the economy. The question is will they be able to trade as aggressively as they need to… Musk doesn’t think they will be able to without plunging the economy into a deep recession.”
JPMorgan Chase (JPM.N) chief executive Jamie Dimon earlier this week described the challenges facing the US economy as akin to a “hurricane.”
Wall Street’s main indices have sold off badly this year, with the Nasdaq (.IXIC) down over 20% so far this year on mounting recession fears as the Federal Reserve aggressively hikes interest rates to combat rising inflation.
At 05:44 ET, the Dow e-minis are down 92 points, or 0.28%, and the S&P 500 e-minis are down 16 points, or 0.38%.
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Reporting by Sruthi Shankar and Medha Singh in Bengaluru; Edited by Shounak Dasgupta
Our standards: The Thomson Reuters Trust Principles.
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