U.S. stock futures were down slightly on Thursday morning following a fifth straight day of losses for the S&P 500 as Wall Street weighed the likelihood of a recession.
Dow Jones Industrial Average futures shed 20 points, or 0.06%. S&P 500 futures lost 0.11%, while Nasdaq 100 futures were 0.18% lower.
Shares of Rent the Runway surged more than 27% in extended trading. The online retailer topped revenue expectations in its most recent quarter as shoppers opted to borrow designer clothes amid rising inflation.
During the regular session Wednesday, the S&P 500 declined 0.19% in its fifth straight losing session. The Dow was virtually flat, adding just 1.58 points. Meanwhile, the Nasdaq Composite slipped 0.51%.
The Federal Reserve is expected to issue a 50 basis point interest rate hike next week. It’s a smaller increase than the prior four rate hikes. Still, investors are increasingly concerned whether the central bank can avoid a recession next year in its attempt to squash inflation.
“We’ve been waiting for earnings to come down, we’ve been waiting for CEOs to acknowledge the fact that a recession is more likely than not, and here we are,” Liz Young, head of investment strategy at SoFi, said Wednesday on CNBC’s “Closing Bell: Overtime.”
“It’s hard for me to see how we wouldn’t have one. But I think it would be a good thing if we just got it over with,” Young added.
On the economic front, investors are awaiting the latest data on weekly jobless claims before the bell on Thursday. Economists polled by Dow Jones are anticipating a reading of 230,000, up slightly from the prior week’s total of 225,000.
Traders are expecting the most recent earnings results from Lululemon Atheltica, DocuSign, Broadcom and Costco after the bell Thursday.