U.S. stocks fell further on Friday as investors awaited a major inflation report seen as a potential turning point for a market gripped by interest rate cuts and earnings disappointments.
Dow Jones Industrial Average futures (YM=F) fell 0.2% after two days of sharp losses. S&P 500 futures (ES=F) fell 0.3%, while those on the tech-heavy Nasdaq 100 (NQ=F) led the way with a decline of 0.5%.
The update to the personal consumption expenditure index is seen as crucial for stocks heading for a losing week as it will also include a look at the Federal Reserve’s preferred inflation measure. The Dow Jones lost close to 1,000 points in three sessions, as surprising data strengthened the arguments for longer interest rates.
Read more: What influence does the labor market have on inflation?
A warmer-than-expected PCE print for April could amplify this situation, as the inflation trajectory remains crucial to the Fed’s rate-cut timeline. The emphasis is on the “core” PCE, which excludes food and energy prices. Economists expect a 0.2% month-over-month increase in the release, which is due at 8:30 a.m. ET.
Among individual movers, shares of Trump Media & Technology Group (DJT) fell slightly after former President Donald Trump was convicted on 34 criminal counts related to falsifying company records.
On the corporate front, Dell (DELL) reported a rise in sales, but its shares fell 16% in pre-market trading as sales of AI servers fell short of high expectations. On the other hand, Gap (GPS) shares rose 23% after a significant gain margin.
