Futures Pointing To Continued Weakness On Wall Street

After ending the previous session mostly lower, stocks may see further downside in early trading on Friday. The major index futures are currently pointing to continued weakness on Wall Street, with the Dow futures down by 143 points.

Technology stocks are likely to remain under pressure following the sharp pullback seen over the course of the trading day on Thursday.

The tech-heavy Nasdaq plummeted by 2.5 percent in yesterday’s trading, more than offsetting the 2.2 percent spike on Wednesday.

While tech stocks benefited from a relief rally following the Federal Reserve’s monetary policy announcement, the sector has subsequently succumbed to concerns about the impact of higher interest rates.

Overall trading activity may be somewhat subdued, however, with a lack of major U.S. economic data likely to keep some traders on the sidelines.

A slew of data is scheduled to be released next week, including reports on consumer confidence, personal income and spending, durable goods orders and new and existing home sales.

Among individual stocks, shares of Rivian (RIVN) are seeing significant pre-market weakness after the electric vehicle maker reported a steep loss in its first quarterly report as a public company and warned that it expects to miss its 2021 production target due to supply chain issues.

Restaurant operator Darden Restaurants (DRI) may also move to the downside after reporting better than expected fiscal second quarter results but forecasting full-year earnings below analyst estimates. Darden also announced the retirement of its Chairman and CEO Gene Lee.

Meanwhile, shares of Cerner (CERN) are moving sharply higher in pre-market trading after a report from the Wall Street Journal said Oracle (ORCL) is in talks to buy the electronic-medical-records company in a deal worth around $30 billion.

Delivery giant FedEx (FDX) is also likely to see initial strength after reporting fiscal second quarter results that exceeded analyst estimates on both the top and bottom lines.

Following the late-day rally seen on Wednesday, stocks moved back to the downside during trading on Thursday. Technology stocks led the way lower, resulting in a particularly steep drop by the tech-heavy Nasdaq.

The Nasdaq plunged 385.15 points or 2.5 percent to 15,180.44 and the S&P 500 slumped 41.18 points or 0.9 percent to 4,668.67. Meanwhile, the Dow spent the afternoon bouncing back and forth across the unchanged line before closing down 29.79 points or 0.1 percent to 35,897.64.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan’s Nikkei 225 Index tumbled by 1.8 percent, while South Korea’s Kospi rose by 0.4 percent.

Meanwhile, European stocks have moved mostly lower on the day. The French CAC 40 Index is down by 1.3 percent and the German DAX Index is down by 1.1 percent, although the U.K.’s FTSE 100 Index is nearly unchanged..

In commodities trading, crude oil futures are slumping $1.22 to $71.16 a barrel after jumping $1.51 to $72.38 a barrel on Thursday. Meanwhile, after surging $33.70 to $1,798.20 an ounce in the previous session, gold futures are climbing $16.50 to $1,814.70 an ounce.

On the currency front, the U.S. dollar is trading at 113.36 yen versus the 113.67 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1314 compared to yesterday’s $1.1330.

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