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Dow, S&P 500 and Nasdaq futures slide after sharp sell-off as rate cut doubts take hold

U.S. stock futures fell Friday after Wall Street’s sharpest selloff in more than a month, as investors pulled out of tech as confidence in a December interest rate cut weakened.

Futures on the Dow Jones Industrial Average (YM=F) lost 0.1%, while those on the S&P 500 (ES=F) fell 0.3%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) fell 0.5%.

Stocks are poised to build on Thursday’s bruising session, which saw major indexes post their biggest one-day declines in more than a month. The Nasdaq Composite (^IXIC) led these declines as heavyweights Nvidia (NVDA), Broadcom (AVGO), and Tesla (TSLA) all fell.

Growing fears that the Federal Reserve will not cut interest rates at its December meeting have led to a pullback in stocks, amid continued debate over big tech’s high valuations and a potential AI bubble. Traders now estimate there is about a 52% chance that rates will fall by a quarter point next month, compared with almost 63% a day earlier and more than 95% a month ago.

In recent days, a wave of Fed officials have issued more hawkish comments, with Minneapolis Fed President Neel Kashkari saying recent data showed “about the same” resilience in the economy, suggesting he might view holding rates on hold as the best option. He said, however, that “I can make a case” for either option.

At the same time, the end of the six-week government paralysis brought only a slight tailwind to the markets, even if it lifted the brake on official data releases. Questions remain about what data will eventually be released – and in what form it will be revealed – now that the government has reopened.

Read more: The best of Yahoo Finance Invest: Big moments, bold ideas from big voices

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  • Pre-market trend tickers: Warner Bros, Whirlpool and Applied Materials

    Warner Bros (WBD) The stock rose 3% premarket Friday following news that Paramount (PSKY), Comcast (CMCSA) and Netflix (NFLX) were preparing bids for the entertainment group.

    Hot tub (WHR) The stock rose 3% before the bell Friday following news that investor David Tepper’s Appaloosa Management had purchased 5.2 million shares of the appliance maker.

    Applied materials (HUGE) The stock fell 5% in premarket trading on Friday after the chipmaker reported a slowdown in revenue. The company’s forecast for the first quarter was more optimistic.

  • Bitcoin Bear Market Deepens as ETF Investors Withdraw $870 Million

    Bloomberg reports:

    Bitcoin (BTC-USD) fell further below the $100,000 mark as a risk aversion crisis sweeping markets saw investors withdraw nearly $900 million from funds investing in the token.

    The largest digital asset fell 2.8% to below $96,000 on Friday before paring its losses, leaving it more than 20% below a record set in early October.

    The crypto market remains under stress after $19 billion in liquidations on October 10 in turn erased more than $1 trillion from the total market value of all cryptocurrencies, according to data from CoinGecko. Liquidations continue, with more than $1 billion in leveraged crypto bets wiped out in the past 24 hours, according to CoinGlass data.

    Meanwhile, exchange-traded funds investing in bitcoin recorded net outflows of about $870 million on Thursday, the second-largest daily withdrawal since their debut.

    Read more here.

  • Gold Rises as Government Shutdown Instability Supports Safe-Haven Demand

    Gold prices (GC=F) rose after a month of decline as uncertainty surrounding data and the fallout from the government shutdown led investors to turn to the safe-haven asset.

    Bloomberg reports:

    Learn more here.

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