Stock futures were lower on Friday morning following a sharp sell-off that brought the S7P 500 to a new 2022 low.
Futures tied to the S&P 500 were down 0.25%. Dow Jones Industrial Average futures lost 0.36% or 106 points. Nasdaq 100 futures were 0.26% lower.
The 2022 sell-off resumed in full force during regular trading on Thursday as investors weighed concerns over future rate-hiking decisions from the Federal Reserve and the impact on the market.
Apple led Thursday’s decline, closing down 4.9% as the tech giant has faced reports of declining demand for its new products, specifically the iPhone 14 series. Bank of America also downgraded the tech giant, which pressured shares.
At the end of regular trading on Thursday, the S&P 500 dropped 2.1% to 3,640.47. The Dow was down 1.54% to 29,225.61, while the Nasdaq Composite fell 2.84% to 10,737.51.
The major indexes are also on track to end the week — and September — sharply in the red. The S&P 500 is off 1.4% for the week, while the Dow and the Nasdaq are each down 1.2%. For September, the S&P 500 is down 7.9%, and the Dow is off 7.2%. The Nasdaq is on track for a loss of 9.1% for the month.
“The market stinks,” said Jamie Cox, managing partner of Harris Financial Group. “But that’s basically what the Fed wants: tighten financial conditions, and they believe that that will help bring down inflation to the levels that they find acceptable. And they’re using the transmission mechanism of the market to make that happen.”
Nike shares fell in after-hours trading after the company reported that sales increased, but supply chain and inventory issues hampered the bottom line in its fiscal first quarter. Meanwhile, Amylyx Pharmaceuticals’ shares spiked after the Food and Drug Administration approved its drug for lou Gehrig’s desease.
On the economic data front, investors will watch for personal income and spending and consumer spending Friday morning. The Federal Reserve’s favorite measure of inflation, the PCE deflator, is also due for August.