HomeBusinessWall Street futures move lower than business survey data

Wall Street futures move lower than business survey data

(Reuters) – U.S. stock index futures fell on Friday after mega-cap technology and chip stocks lost ground, as investors awaited surveys in the manufacturing and services sectors for more clues about the health of the world’s largest economy.

The S&P 500 crossed the 5,500-point mark during Thursday’s session, but both the benchmark index and the Nasdaq closed lower as shares of mega-cap stocks retreated.

Nvidia fell 1.5% in premarket trading on Friday after losses in the previous session caused its market valuation to fall below Microsoft’s.

Other chipmakers Broadcom, Super Micro Computer and Qualcomm fell between 0.8% and 1.2%, while shares of Microsoft fell 0.2% and Apple fell 0.3%.

Later in the day, manufacturing and services sector figures are expected to fall slightly but remain above the 50 level, indicating activity is still growing.

Wall Street has rebounded in recent months, thanks in large part to stocks like Nvidia and a handful of other artificial intelligence-related stocks.

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Investors are also assessing a series of weakening economic data and commentary from the U.S. Federal Reserve that rates could stay higher for longer if there is no consistent improvement in inflation data.

Minneapolis Fed President Neel Kashkari said Thursday that it would take a year or two to get inflation back to 2% because wage growth may still be too high.

Still, all three major Wall Street indexes are on track to end the week higher, as is the small-cap-focused Russell 2000.

Money markets estimate a 64% chance of a 25 basis point rate cut at the Fed’s September meeting, and still expect about two rate cuts this year, according to LSEG’s FedWatch data.

Friday’s session also marks the expiration of quarterly derivative contracts tied to stocks, index options and futures, known as triple witching.

At 5:49 a.m. ET, the Dow e-minis were down 26 points, or 0.07%, the S&P 500 e-minis were down 8.25 points, or 0.15%, and the Nasdaq 100 e-minis were down 24.75 points, or 0.12%.

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Shares of drugmaker Gilead rose 6.4%, extending gains from the previous session, as a late-stage study found the long-acting injectable drug was more effective at preventing HIV infection in women compared to the existing daily pill Truvada.

Sarepta Therapeutics rose 34% after the U.S. Food and Drug Administration allowed the expanded use of the company’s gene therapy for patients with Duchenne muscular dystrophy aged four years and older.

(Reporting by Lisa Mattackal in Bengaluru; Editing by Shounak Dasgupta)

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