U.S. stock futures slipped lower Friday, continuing the previous session’s selloff as waning bets on a December interest rate cut and a sustained rotation out of technology stocks hit sentiment.
At 05:30 ET (10:30 GMT), Dow Jones Futures dropped 60 points, or 0.1%, S&P 500 Futures slipped 12 points, or 0.2%, and Nasdaq 100 Futures fell 100 points, or 0.4%.
The main averages tumbled on Thursday, recording their worst day in more than a month, as a boost from the end of the U.S. government shutdown earlier this week waned. In its place emerged a slew of fresh worries denting investor sentiment, including fears over the sustainability of sky-high tech sector valuations, particularly if the Federal Reserve chooses not to ease policy next month.
The blue chip Dow Jones Industrial Average lost almost 800 points, or 1.7%, retreating below the 48,000 level that it crossed for the first time on Wednesday. The broad-based S&P 500 also dropped 1.7%, while the tech-heavy NASDAQ Composite slumped 2.3%, on track to end its seven-week win streak.
December rate cut in doubt
Hawkish comments from a number of Fed speakers have prompted investors to sharply dial back their expectations for a December interest rate cut by the Federal Reserve.
Minneapolis Fed President Neel Kashkari told Bloomberg that he opposed a rate cut last month and is on the fence about December as well.
While both Alberto Musalem, president of the St. Louis Fed, and Cleveland Fed President Beth Hammack expressed concern about Fed policies becoming overly accommodative with inflation still elevated.
