Stock futures fell overnight Thursday, with the S&P 500 facing its worst week in almost six months. Dow Jones Industrial Average futures were down 0.1%, S&P 500 futures lost nearly 0.2%, and Nasdaq 100 futures dropped 0.3%. Despite reporting strong quarterly earnings, Netflix shares fell over 4% in extended trading. The streaming giant announced a 16% increase in subscribers but stated it would no longer report paid memberships starting in 2025. The S&P 500 has fallen for five consecutive sessions, with week-to-date losses at 2.2%, marking its largest losing week since October 2023 and sitting 4.8% below its 52-week high.
The market retreat has primarily been influenced by reduced expectations for an imminent rate cut. Economists and strategists now anticipate the Fed waiting until at least September to lower rates, with the possibility of no cuts at all this year gaining traction. Neel Kashkari, Minneapolis Fed President, emphasized the need for patience before implementing rate cuts during an interview on Fox News. Landsberg Bennett Private Wealth Management Chief Investment Officer Michael Landsberg noted that inflation, which is resurging, is a major concern for the stock market, dampening hopes for rate cuts in 2024. The Dow and Nasdaq Composite are both set to finish the week in negative territory, declining 0.6% and 3.6%, respectively. The Nasdaq is heading towards its fourth consecutive week of losses.
Key companies, including consumer products giant Procter & Gamble, oilfield services company SLB, and financial services firm American Express, are expected to release their quarterly results on Friday morning. These earnings reports could provide further insight into the market’s direction and potential impact on stock performance in the days ahead. As investors continue to monitor inflation and the likelihood of rate cuts, market volatility may persist in the coming weeks. It is essential for investors to stay informed and adjust their strategies accordingly to navigate current market conditions successfully.
