U.S. stocks fell further on Friday as investors awaited a key inflation report seen as a potential turning point for a market plagued by rate cut jitters and disappointing earnings.
Dow Jones Industrial Average (YM=F) futures slipped 0.2%, following two days of steep losses. Futures on the S&P 500 (ES=F) fell 0.3%, while those on the tech-heavy Nasdaq 100 (NQ=F) led the way with a decline of 0.5 %.
The Personal Consumption Expenditures Price Index update is seen as crucial for stocks heading into a losing week, given that it will include insight into the Federal Reserve’s preferred inflation gauge . The Dow lost nearly 1,000 points in three sessions as the surprise data strengthened the case for higher and longer interest rates.
Learn more: How does the labor market affect inflation?
A higher-than-expected PCE reading for April could solidify this assumption, given that the path of inflation remains crucial to the Fed’s rate cut timeline. The focus is on “core” PCE, which excludes food and energy prices. Economists expect a 0.2% month-over-month rise in the release, due at 8:30 a.m. ET.
On the individual mover side, shares of Trump Media & Technology Group (DJT) fell slightly after former President Donald Trump was convicted of 34 criminal counts related to falsifying business records.
On the corporate side, Dell (DELL) reported an increase in revenue, but its shares plunged 16% in premarket trading as sales of its AI servers fell short of high hopes. On the other hand, Gap (GPS) stock soared 23% on the heels of a major earnings hike.
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