Stock futures were lower on Friday morning after a sharp selloff that brought the S&P 500 to a new 2022 low.
Futures linked to the S&P 500 fell 0.25 percent. Dow Jones Industrial Average futures lost 0.36% or 106 points. Nasdaq 100 futures were 0.26% lower.
The sell-off in 2022 resumed in full force during regular trading on Thursday as investors weighed concerns over future rate hike decisions by the Federal Reserve and its impact on the market.
Apple led Thursday’s decline, closing down 4.9% as the tech giant faced reports of declining demand for its new products, particularly the iPhone 14 series. Bank of America also downgraded the tech giant, which pressured shares.
At the close of regular trading on Thursday, the S&P 500 fell 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.
The major indices are also on track to end the week – and September – sharply in the red. The S&P 500 is down 1.4% for the week, while the Dow and Nasdaq are down 1.2% each. For September, the S&P 500 is down 7.9%, and the Dow is down 7.2%. The Nasdaq is headed for a 9.1% loss for the month.
“The market stinks,” said Jamie Cox, managing partner at Harris Financial Group. “But that’s basically what the Fed wants: to tighten financial conditions, and they think that will help bring inflation down to levels they find acceptable. And they use the transmission mechanism to the market to do that.”
Nike shares fell in after-hours trading after the company reported that sales rose, but supply chain and inventory issues hampered the bottom line in the fiscal first quarter. Meanwhile, shares of Amylyx Pharmaceuticals rose after the Food and Drug Administration approved the drug for Lou Gehrig’s disease.
On the financial data front, investors will be watching for personal income and expenses and consumer spending on Friday morning. The Federal Reserve’s favorite measure of inflation, the PCE deflator, is also due in August.