U.S. stock futures slipped Friday morning, following a rough session for major stock indexes on Thursday. Futures linked to the S&P 500 were slightly below even, with the Dow Jones Industrial Average futures down by 54 points, or 0.13%. Nasdaq 100 futures also dropped by 0.11%.
Thursday’s Market Losses
On Thursday, major indexes ended lower. The S&P 500 fell 0.2%, while the Nasdaq Composite decreased by 0.3%. The Dow Jones Industrial Average lost 11.31 points, or 0.03%. This marked a continuation of the recent market struggles.
Fed’s Economic Outlook and Tariff Concerns
On Wednesday, the Federal Reserve kept its forecast of two rate cuts for the year. However, it raised its inflation expectations and reduced its economic growth outlook. This shift raised concerns about stagflation – a situation where inflation rises as economic growth slows. Additionally, uncertainty surrounding President Donald Trump’s tariff policies has caused volatility in the market in recent weeks. Fed Chair Jerome Powell mentioned that tariffs could “delay” progress on controlling inflation.
Impact of Tariffs on Companies
The ongoing tariff concerns are affecting businesses, said Michael Green, Chief Strategist at Simplify Asset Management. He explained that many companies are struggling with planning and capital spending decisions, citing uncertainty over tariffs. “When companies pause, it signals a slowdown,” Green said, reflecting how this is influencing market performance.
Monthly Market Struggles and Potential Recovery
It has been a challenging month for the markets. The Nasdaq remains in correction territory, meaning it is still more than 10% below its recent peak. The S&P 500 briefly entered correction territory last week as well.
However, there is a potential recovery in sight. The S&P 500 is on track to rise by 0.4% this week, aiming to end a four-week losing streak. The Dow is set to gain 1.1%, marking its strongest weekly performance since January. Meanwhile, the Nasdaq is down by 0.4% for the week, on track for its fifth consecutive losing week, the longest such streak since May 2022.
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