Inventory futures are decrease after Thursday’s broad sell-off

Stock futures were lower Friday morning after a sharp sell-off that took the S&P 500 to a fresh 2022 low.

Futures linked to the S&P 500 fell 0.25%. Dow Jones Industrial Average futures lost 0.36%, or 106 points. Nasdaq 100 futures were 0.26% lower.

The 2022 sell-off continued in full force during Thursday’s regular trading as investors weighed concerns about future Federal Reserve rate hike decisions and the impact on the market.

Apple led Thursday’s decline, down 4.9%, as the tech giant faced reports of falling demand for its new products, particularly the iPhone 14 series. Bank of America also downgraded the tech giant, putting pressure on shares.

At the close of regular trading on Thursday, the S&P 500 was down 2.1% to 3,640.47. The Dow fell 1.54% to 29,225.61, while the Nasdaq Composite fell 2.84% to 10,737.51.

Major indices are also on course to end the week – and September – well down. The S&P 500 is down 1.4% this week, while the Dow and Nasdaq are each down 1.2%. In September, the S&P 500 is down 7.9% and the Dow is down 7.2%. The Nasdaq is on track for a 9.1% monthly loss.

“The market stinks,” said Jamie Cox, managing partner of Harris Financial Group. “But that’s basically what the Fed wants: tightening of financial conditions, and they believe this will help bring inflation down to levels they find acceptable.” And they use the transmission mechanism of the market to do that.”

Nike shares fell in after-hours trading after the company reported that sales were up but supply chain and inventory issues hurt its bottom line in the fiscal first quarter. Meanwhile, shares of Amylyx Pharmaceuticals rose after the Food and Drug Administration approved its drug for Lou Gehrig’s disease.

On the economic data frontline, investors will be watching personal income and spending as well as consumer spending on Friday morning. The US Federal Reserve’s favorite inflation measure, the PCE deflator, is also due for August.

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