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* Futures drop: Dow 0.46 pct, S&P 0.57 pct, Nasdaq 0.73 pct
* U.S. government heads towards partial shutdown
* Q3 GDP and November consumer spending data on tap
* Nike jumps after results beat estimates
* “Quadruple witching” likely to lead to volatility
By Medha Singh
Dec 21 (Reuters) – S&P 500 e-minis logged their biggestlosing streak in seven years on Friday, dropping about 0.6percent on growing worries of slowing global growth and thethreat of a U.S. government shutdown.
The Federal Reserve’s plan, announced Wednesday, to keepraising interest rates was an added headache for investorsalready fearful that trade wars and other geopolitical concernswould grind economic and corporate growth to a halt.
The U.S. central bank’s view that the economy is strong willbe tested amid a slew of economic data, including third-quarterGDP and November consumer spending, the Fed’s preferred measureof inflation.
Adding to the nerves was a chance that the government couldbe shut down unless President Donald Trump and Congress cut adeal before midnight on their long-running battle over funds fora Mexico border wall. urn:newsml:reuters.com:*:nL1N1YQ01W
Volatility may rise again on Friday on account of “quadruplewitching,” as investors unwind interests in futures and optionscontracts prior to expiration.
“The indices are headed for another volatile,negative session as options expirations, turmoil in the WhiteHouse and a renewed possibility of a partial government shutdowncontinue to shatter the nerves of investors,” said PeterCardillo, chief market economist at Spartan Capital Securitiesin New York.
One silver lining was Nike IncNKE.N , whose shares jumped8.5 percent in premarket trading after the company’s quarterlyresults beat Wall Street estimates on strength in North America. urn:newsml:reuters.com:*:nL3N1YP5WE
At 7:29 a.m. ET, S&P 500 e-minis ESc1 were down 0.57percent, falling for the seventh session in a row, their longestlosing streak since November 2011.
Dow e-minis 1YMc1 were down 0.46 percent and Nasdaq 100e-minis NQc1 were down 0.73 percent.
The three main Wall Street indices are already in correctionterritory, having fallen more than 10 percent from their recordclosing highs, and are closing in on bear market territory, whena security closes 20 percent below a recent high.
While the Nasdaq came within a whisker of bear marketterritory on Thursday, other segments of the market, includingthe Russell 2000 .RUT small-cap benchmark and the Dow JonesTransport Average .DJT are already in bear market territory. urn:newsml:reuters.com:*:nL1N1YP1WU
Data is also expected to show U.S. third-quarter grossdomestic product (GDP) growth was 3.5 percent, in line with theprior quarter.
While consumer spending in November is likely to have slowedfrom the month before, the core PCE index, the Fed’s preferredinflation measure, is expected to have edged higher.
Both reports are due at 8:30 a.m. ET, along with datashowing durable goods orders rebounded 1.6 percent in November,after a drop of 4.3 percent in the previous month.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ FACTBOX-Declines for key global stock market barometers urn:newsml:reuters.com:*:nL1N1YP1SR ANALYSIS-Nasdaq goes bear as momentum plays run out of gas urn:newsml:reuters.com:*:nL1N1YP1SQ ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Medha Singh in Bengaluru; Editing by ShounakDasgupta) ((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780,outside U.S. +91 80 6749 1130; Reuters Messaging:firstname.lastname@example.org))