Stock futures fell Wednesday and traders worried about a possible recession as the Federal Reserve could raise interest rates longer than expected.
Futures tracking the Dow Jones Industrial Average dropped 97 points (0.3%), S&P 500 futures dropped 0.46% and Nasdaq 100 futures dropped 0.7%.
Wall Street is about to end another tough session as the Dow drops more than 350 points (1.03%). The S&P 500 and Nasdaq Composite were down 1.4% and 2% respectively.
Investors are losing hope that the Fed can achieve a so-called soft landing by raising interest rates to curb inflation and avoid a recession. Instead, concerns swirl about the state of the economy and whether a recession is imminent.
“Investors couldn’t decide whether they were more worried about an imminent recession, housing data or the threat of a more hawkish FOMC, which November’s declines in the ISM, Chicago PMI and Philly Fed suggested. The employment data and factory orders were above expectations.” “For the first time since August 2021, shares were sold across the board as investors decided to take the profits generated by the last two monthly price increases.”
Investors are eagerly awaiting more economic data this week for clues as to what to expect from the Fed. On Wednesday, the Mortgage Bankers Association will release its weekly report of mortgage applications.
And there are still a few companies that plan to report earnings. Campbell Soup and GameStop will report results on Wednesday.
