Traders on the floor of the NYSE, May 11, 2023.
Source: NYSE
Stock futures fell Friday after the major averages dropped for a third straight day.
Dow Jones Industrial Average futures were down by 134 points, or 0.4%. S&P 500 futures declined 0.5%, and Nasdaq-100 futures fell 0.8%.
The Dow is on pace for its worst week since March, lower by 2.29% through Thursday. Meanwhile, the S&P 500 is headed for a third straight week of losses, a streak that hasn’t happened since February. The Nasdaq Composite is also set for a third consecutive losing week for the first time since December.
Meanwhile, the Dow Transports and Russell 2000 are each on pace for their worst weeks since March.
Earnings season continued. Applied Materials shares added nearly 3% in extended trading after the semiconductor equipment maker beat analysts’ expectations on the top and bottom lines. Ross Stores also popped about 5% after topping second-quarter forecasts.
Palo Alto Networks will report Friday after the close.
On Thursday, the Dow closed below the 50-day moving average for the first time since June 1 — which is a bearish signal for investors. The 30-stock index tumbled 290.91 points, or 0.84%. Meanwhile, the S&P 500 decliszned 0.77%, and the Nasdaq Composite slid 1.17%.
The 10-year U.S. Treasury yield on Thursday rose to its highest level since October 2022. The move came after the July meeting minutes from the Federal Reserve suggested further interest rate hikes could be ahead as central bank policymakers remain concerned about inflation.
“Rates are not going higher for the right reasons in my opinion,” Private Advisor Group’s Guy Adami told CNBC’s “Fast Money.” “This is now a confluence of events going on globally. We’re at levels we haven’t seen in quite some time.”
“If yields continue to move like they’re moving, there’s going to be some ramifications for global equity markets,” he added.
