US stock futures fell on Friday morning as fears of aggressive Federal Reserve policy weighed on equity markets. heading for a big weekly loss and Treasury yields continue a perilous climb to fresh highs.
S&P 500 futures fell 1.2% in early trade, while the Dow Jones Industrial Average fell more than 300 points, or 1.1%, to its lowest level since March 2021. futures fell by 1.3%.
Meanwhile, the US 10-year Treasury yield rose above 3.7 to its highest level since 2010. The US dollar index rose to 112.10. And in commodity markets, crude oil fell, with West Texas Intermediate (WTI) futures down 2.3% to $81.57 a barrel and Brent crude down 2% to $88.61 a barrel.
The moves come after Federal Reserve officials raised interest rates by 75 basis points for the third time earlier this week, and Chairman Jerome Powell made it clear that policymakers are willing to accept economic pain in exchange for restoring price stability.
Goldman Sachs It reduced the target of the end of 2022 About 16% for the S&P 500 index – from 4,300 to 3,600 points.
“Expected interest rates are now higher than we previously estimated, which is pushing the distribution of stock market results lower than our previous forecast,” said Goldman’s David Kostin.
“Based on our client discussions, the majority of equity investors have accepted the view that a hard-down scenario is imminent and their focus is on the timing, extent and duration of a potential downturn and investment strategies for that prospect,” he said.
In corporate news, Costco (COST) were among the movers on Friday after a massive retail sell-off fiscal fourth quarter revenues and earnings That beat Wall Street estimates, but said inflationary pressures were weighing on profit margins as consumer habits changed. Shares were down 3% in premarket trading.
FedEx shares (FDX) fell nearly 2% in extended trade after the shipping giant’s announcement cost reduction measures and the rate increases, a week later pathetic pre-earnings announcement its stock is down 20%.
Alexandra Semenova is a correspondent for Yahoo Finance. Follow him on Twitter @alexandraandnyc
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