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Equity futures fall after the S & P 500 hits its worst first half since 1970

US equity futures fell on Friday morning after the S & P 500 finished its worst first half performance in decades.

Futures related to the Dow Jones Industrial Average fell 75 points, or 0.3%. S & P 500 futures fell 0.2% and Nasdaq 100 futures fell 0.4%.

Micron Technology shares fell more than 4% in pre-market trading following the unexpected outlook for the fourth quarter.

Thursday marked the end of the second quarter and first half. The S & P 500 fell more than 16% this quarter. This is the largest fall of a quarter since March 2020. The market index fell 20.6% in the first half, the largest decline since 1970. The bear market territory has fallen by more than 21% from the record high set in early January.

The Dow Jones Industrial Average and the Nasdaq Composite Index were unavoidable from the onslaught. The Dow of 30 shares fell 11.3% in the second quarter and fell more than 15% in 2022. Meanwhile, the Nasdaq suffered the largest quarterly decline since 2008, down 22.4%. These losses pushed technology-intensive composites into the bear market territory, down nearly 32% from November’s record highs. It is also a decrease of 29.5% so far.

These sharp first-half and quarterly losses occur when investors are working on ultra-high inflation and monetary tightening policies. Core Consumer Expenditure Index – Federal Reserve Priority Inflation Gauge, Last month increased 4.7% year-on-year.. It was slightly below the Dow Jones estimates, but still close to decades of highs.

Second, the Fed stepped up its efforts to combat rising prices, rising 0.75 percentage points in June. It was the biggest rate hike since 1994.

Both of these factors add to the concern about recession. First quarter GDP shrank 1.6% Atlanta Federal Reserve GDP Now Tracker It shows that economic output in the second quarter will decrease by another 1%.

“With comfort, universal losses at this pace are rarely incurred in the next quarter,” said Michael Shoal of Marketfield Asset Management. It’s not the same as saying it shouldn’t be expected. ” “This still looks like the middle of the story. It’s a time when the previous” Pacific “outlook was replaced by something much more stormy, and there are still no signs that the weather is likely to improve. “”

Traders will incorporate more economic data on Friday and publish the latest ISM Manufacturing Index and construction cost figures at 10am ET.

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Equity futures fall after the S & P 500 hits its worst first half since 1970

Source link Equity futures fall after the S & P 500 hits its worst first half since 1970

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