In light of the pressures faced at the close of the former session, stock markets are anticipated to experience continued declines as trading begins on Friday. The primary index futures are currently indicating a lower opening for U.S. markets, with S&P 500 futures decreasing by 0.6%.
Investor anxiety regarding interest rate projections persists on Wall Street, influenced by Federal Reserve Chair Jerome Powell's recent comments. On Thursday, Powell stated that there is no immediate necessity for the central bank to reduce rates, citing the robustness of the U.S. economy, which allows for a measured approach to monetary policy going forward.
The futures maintained their negative stance after the latest U.S. economic data release. The Commerce Department reported that retail sales slightly surpassed expectations in October, increasing by 0.4% compared to an upwardly revised 0.8% in September—ahead of economists' predictions of a 0.3% rise. Excluding a notable increase in sales from motor vehicle and parts dealers, retail sales edged up by 0.1% following a 1.0% jump in September; expectations had been set for a 0.3% rise in non-auto sales.
Additional economic data came from the Labor Department, which reported an unexpected rise in import prices for October, potentially fueling concerns about stubborn inflation. Import prices rose by 0.3% after a 0.4% decline in September, contrary to economists’ predictions of a 0.1% decrease. Meanwhile, export prices climbed by 0.8%, recovering from a revised 0.6% drop in September, as opposed to the anticipated 0.1% decline.
As trading commenced, market participants awaited the Federal Reserve's report on October industrial production, expected to show a 0.3% decline, matching September's decrease.
On Thursday, after a day of fluctuating directions, stocks came under significant pressure. The major averages solidified their descent towards the end of the trading day. Ultimately, the Dow Jones Industrial Average dropped by 207.33 points (0.5%) to 43,750.86, the Nasdaq Composite fell by 123.07 points (0.6%) to 19,107.65, and the S&P 500 declined by 36.21 points (0.6%) to 5,949.17.
Internationally, Asia-Pacific stock markets displayed mixed results on Friday. Japan's Nikkei 225 Index saw a 0.3% increase, while China's Shanghai Composite Index fell by 1.5%. In Europe, the main markets all trended downward, with the French CAC 40 Index down 0.4%, the German DAX Index down 0.3%, and the U.K.'s FTSE 100 Index down 0.1%.
In the commodities sector, crude oil futures declined by $0.39 to $68.31 per barrel, following a $0.27 rise to $68.70 per barrel on Thursday. Gold futures showed a slight decrease of $1 to $2,571.90 per ounce, after dropping $13.60 to $2,572.90 per ounce in the previous session.
On the currency front, the U.S. dollar is trading at 155.33 yen, compared to 156.27 yen at the close of Thursday’s New York trading. Against the euro, the dollar stands at $1.0565, moving up from $1.0530.
