US inventory futures fall because the Dow heads in the direction of its worst week since January
US stock futures fell on Friday as the S&P 500 and Dow Jones Industrial Average hit a week of losses following the Fed’s latest monetary policy update.
Futures for the Dow lost 131 points. S&P 500 Futures Down 0.3% and Nasdaq 100 Futures Down 0.1%
The blue-chip Dow lost 1.9% week-to-week, making it its worst week since January. The S&P 500 is down 0.6%. But the Nasdaq was up 0.65% for the week.
Most commodity prices rebounded somewhat on Friday after falling sharply this week as China tries to cool rising prices and the US dollar strengthened. Copper, gold and platinum futures prices rebounded on Friday but were still down sharply during the week.
Friday’s rally helped push some commodity stocks higher in early trading. Newmont gained nearly 2% in pre-trading.
Chip stocks that have had a good week behind them are likely to resume their run on Friday, with Nvidia stocks up about 1% in pre-trading.
Adobe stock rose roughly 3% in pre-trading hours after earnings and sales topped estimates.
The Fed’s much-anticipated decision on Wednesday resulted in a sell-off in stocks that continued through day two. The central bank announced that it would keep rates unchanged, raised its inflation forecast to 3.4% for 2021 and pushed forward planned rate hikes.
“Investors may interpret the Fed’s restrictive bias on Wednesday as a sign that extensive post-pandemic US economic expansion may be a little harder to achieve in what may be an emerging environment of less expansionary monetary policy,” Goldman Sachs’ Chris Hussey said in a note .
Friday also coincides with the quarterly “Quadruple Witching”, during which options and futures on indices and stocks expire. Many expect more volatile trading in the face of this event.
On Thursday, the Labor Department reported an unexpected surge in initial jobless claims last week to a total of 412,000, an increase of 37,000 from the previous week and higher than its estimate of 360,000.