U.S. stock index futures pointed to a bounce for Wall Street on Friday, with sentiment getting a lift from a cut in one of China’s key lending rates, but investors are still facing yet another weekly loss.
How are stock-index futures trading?
On Thursday, the Dow industrials and S&P 500 booked their lowest closes since March 2021, according to Dow Jones Market Data. The Dow DJIA, -0.75% fell 236.94 points, or 0.8%, ending at 31,253.13, after a 300 point gain at one point. The S&P 500 SPX, -0.58% fell 0.6% to 3,900.79, and the Nasdaq Composite COMP, -0.26% slipped 0.3% to 11,388.50.
Wednesday’s dramatic selloff marked the worst day for the Dow and S&P 500 since June 2020.
What’s driving markets?
The People’s Bank of China on Friday cut in its rate on five-year loans, aimed at shoring up weak housing sales by cutting mortgage costs. The country has been battling COVID outbreaks, with lockdowns in industrial hubs such as Shanghai blamed for weak factory and consumer activity data in April.
“The news out of China and the successful test of the S&P 500 holding support is poised to pull the index out of the danger zone. We reiterate; for now, we think the market has placed in a bottom,” Peter Cardillo, chief market economist at Spartan Capital, told clients in a note.
The S&P 500 finished a step closer to bear-market territory on Thursday as the Russia-Ukraine war, a China slowdown, high inflation and rising interest rates have sparked concerns over corporate profits and economic growth.
Down 3% or more each, major U.S. stock indexes are likely facing yet another week of losses. The Dow industrials is set for its eighth-straight loss, which mark its longest streak in history, according to FactSet.
The S&P 500 and Nasdaq are poised for their worst losing streaks since June 2011 and November, 2012, respectively. Losses have come amid concerns about whether soaring inflation can be brought under control by the Federal Reserve without derailing the economy.
The U.S. data calendar is empty for Friday, but next week will bring another round of inflation data, personal consumption expenditure prices excluding food and energy.
Which companies are in focus
How are other assets trading?