Investing.com — U.S. stock index futures fell in overnight trading Thursday, extending losses as fears of higher interest rates and slowing growth led to a two-day rout on Wall Street, with focus now turning to key personal consumption expenditures data for more signals about… Inflation. .
Investors were also on edge about any potential political unrest in the US, after a New York court found former President Donald Trump guilty in the hush money scandal. Trump is scheduled to be sentenced on July 11, and faces possible prison time.
A combination of weak earnings and profit-taking has led to heavy losses on Wall Street over the past two sessions, while growing doubts about the artificial intelligence industry have also weighed on heavyweight technology stocks.
This came amid growing skepticism about any interest rate cuts by the Federal Reserve, especially as policymakers warned that steady inflation would prevent the central bank from easing policy this year.
The index fell 0.2% to 5,242.75 points, while it fell 0.3% to 1,859.25 points by 19:52 Eastern time (23:2 GMT). It fell 0.2% to 38,174.0 points.
PCE data awaits further inflation and interest rates
Investors are now directly focused on the upcoming data scheduled for release on Friday.
This reading is the Fed's preferred measure of inflation, and is likely to take into account the central bank's expectations about interest rates.
Friday's reading is expected to show that inflation eased slightly in April. But the reading is also expected to remain well above the Fed's annual target range of 2%, giving the central bank little reason to start cutting interest rates.
Wall Street was spooked by interest rate fluctuations and weak GDP
Fears of higher interest rates for longer sent Wall Street into two days of sharp losses this week.
Pressure also came from the end-of-month selling, while the end of the first quarter earnings season brought a slew of disappointments.
In addition, data released Thursday showed that the US economy grew less than initially expected in the first quarter, raising concerns about a stagflation scenario — where growth remains slow, but inflation remains high.
The index fell 0.6% to 5,235.48 points, while it fell 1.1% to 16,737.08 points on Thursday. The index fell 0.9% to 38,111.48 points.
Dell declines on weak earnings, Zscaler rises
Among the key after-hours movers, Dell Technologies Inc (NYSE:) fell nearly 18% after disappointing first-quarter earnings, as demand from the artificial intelligence industry only marginally impacted overall sales.
Clothing retailer Nordstrom Company (NYSE:) fell 7% on disappointing quarterly earnings, while its peer GPS rose 20% on better-than-expected earnings and an improving outlook for the year.
Zescaler Company (NASDAQ:) rose 13% after the cloud security company posted strong quarterly earnings and also raised its guidance.