Wall Street stocks trended lower ahead of Thursday’s open as mounting signs the US economy was heating up gave investors reason to believe the Federal Reserve will keep interest rates higher for longer becomes.
Futures on the Dow Jones Industrial Average (^DJI) were broadly flat, but other major equity indicators lost ground after all three ended lower on Wednesday. S&P 500 (^GSPC) futures fell about 0.3%, while Nasdaq 100 futures fell about 0.7%.
Equities came under pressure after data unexpectedly showed that US services activity hit a six-month high in August, seen as a sign of consumer and broader economy resilience in the face of higher borrowing costs. Meanwhile, gains in Treasury yields (^TNX) weighed on technology stocks but were slightly down on Thursday.
Apple (AAPL) shares fell further after reports that China has banned government officials from using its iPhone and plans to extend the ban to state-owned companies. The move is a headwind for Apple in its largest foreign market, which is also its global manufacturing base.
The rise in oil prices (CL=F), which cast doubt on the Fed’s efforts to cool inflation, eased on Thursday after China’s trade numbers failed to allay worries about the slack in the world’s second-largest economy. Questions are circulating as to whether China’s downturn could pose a “biggest risk” to the US economy.
Coupled with a fresh set of negative data out of Europe, the data underscores concerns about slowing global demand.
With that in mind, an update on US initial jobless claims later on Thursday will feed into the debate on whether the Fed can be persuaded at its September meeting in a couple of weeks to hold interest rates high.
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https://finance.yahoo.com/news/us-futures-fall-with-feds-next-move-in-focus-stock-market-news-today-110855288.html US futures fall as Fed’s next move in focus: financial news today