U.S. stock futures edged lower on Friday after Wall Street suffered its sharpest sell-off in over a month, as investors retreated from the technology sector amid waning expectations for a Federal Reserve rate cut in December.
As of 5:03 P.M. (GMT+7), the Dow Jones Industrial Average futures ticked down by 0.16%, or 76.10 points, to 47,380.90 points, while S&P 500 futures edged marginally lower by 0.28%, or 18.60 points, to 6,718.90 points. Nasdaq 100 futures also slipped down by 0.54%, or 135.90 points, to 24,857.60 points.
The muted tone comes after a volatile session saw all major indexes post their steepest single-day losses in over a month. The Dow relinquished record gains that had briefly lifted it above the 48,000 mark, with the Nasdaq Composite faring worst, weighed down by plunges in heavyweight names such as Nvidia, Broadcom, and Tesla.
Renewed uncertainty surrounding the Fed’s path for interest rates has cast a cloud over sentiment. The recent end of the six-week government shutdown—initially greeted with optimism—has instead given way to doubts about the underlying strength of the U.S. economy. Market pricing now reflects only about a 52% probability of a quarter-point rate reduction in December, a notable drop from nearly 63% the prior day and over 95% a month ago.
A series of more hawkish signals from Fed officials has also unsettled investors. Minneapolis Fed President Neel Kashkari remarked that recent economic reports have shown continued stability, which could convince him that keeping rates unchanged is appropriate, though he noted, “I can make a case” for either option.
There is also lingering confusion over the schedule and scope of upcoming U.S. economic data releases, with the White House cautioning that official figures may be “permanently impaired” in the wake of the government reopening.
