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U.S. stock futures fell on Friday after Intel’s bleak outlook as investors awaited key inflation indicators that could influence the timing of interest rate cuts.
S&P 500 (^GSPC) futures fell below the flatline after Thursday’s win saw the benchmark close at a new record high. Dow Jones Industrial Average (^DJI) futures are also trading below this line, and tech-heavy Nasdaq 100 (^NDX) futures are down nearly 0.3%.
Tech stocks led the decline after Intel (INTC)’s first-quarter outlook was significantly lower than Wall Street expectations, slightly denting the hopes for AI that had driven stocks to record highs. . Intel stock fell more than 10% in premarket trading, with peers AMD (AMD) and Nvidia (NVDA) also down slightly.
Given that preliminary figures on the economic growth rate for the fourth quarter exceeded expectations, much attention will be focused on the release of the PCE index in December. This could support claims that the Fed will hold off on cutting interest rates beyond March as policymakers seek a “soft landing” for the economy.
read more: Impact of the Fed’s interest rate hike suspension on bank accounts, CDs, loans, and credit cards
Additionally, the GDP report’s numbers on quarterly PCE suggested that inflation is trending in the right direction for the Fed. In Friday’s monthly update, annual “core” PCE excluding food and energy is expected to remain at 3%.
At the same time, investors will be watching the next earnings report for further insight into the health of American companies and the economy. Colgate-Palmolive (CL) was a highlight on Friday, with American Express (AXP) also in the spotlight, especially after payment card rival Visa (V) posted a lackluster earnings growth forecast. There is.
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