Stock futures traded lower on Thursday, building on losses from the previous session as interest rate and recession fears weighed on market sentiment.
Futures linked to the Dow Jones Industrial Average fell 277 points, or 0.8%. S&P 500 futures and Nasdaq 100 futures lost 0.8% and 1%, respectively.
Wall Street comes off a losing session. The S&P 500 fell 1.56% on Wednesday, its worst day since December 15. The Dow lost more than 613 points, or 1.81%. The tech-heavy Nasdaq Composite fell 1.24% to post seven straight days of gains. Banking stocks including JPMorgan, Bank of America and Wells Fargo slid, weighing on the broader market.
Disappointing retail sales and a weaker-than-expected PPI fueled recession fears and sent stocks lower.
On Thursday, investors will consider more economic data that could provide further clues as to how much the Fed may hike rates at its upcoming meeting. Initial jobless claims, housing starts and the Philadelphia Federal Reserve’s manufacturing survey will be released in the morning. Several central bank leaders, including Fed Vice Chair Lael Brainard, will also discuss the way forward later in the day.
Investors have been scouring the latest data and comments from the Fed for clues as to how high rates are headed. But while the latest numbers suggest inflation is slowing, JPMorgan Chase CEO Jamie Dimon believes rates will stay above 5%.
“I think there’s a lot of underlying inflation that’s not going to go away anytime soon,” Dimon told CNBC’s “Squawk Box” from the World Economic Forum in Davos, Switzerland.
Investors will also be watching key earnings reports to see if an earnings recession is brewing. Netflix and Truist Financial are among the companies to report earnings on Thursday.
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