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.
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