U.S. Stocks May See Further Downside In Early Trading

U.S. Stocks May See Further Downside In Early Trading,After ending the previous session sharply lower, stocks may see further downside in early trading on Friday. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.

U.S. Stocks May See Further Downside In Early Trading

After ending the previous session sharply lower, stocks may see further downside in early trading on Friday. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.6 percent.

Concerns about the outlook for interest rates may continue to weigh on Wall Street as traders digest this week’s batch of economic data.

Reports on consumer and producer price inflation and retail sales have led to worries the Federal Reserve could raise rates higher than currently anticipated.

Recent comments from Fed officials have added to the concerns, with some suggesting the central bank could raise rates by another 50 basis points next month.

Overall trading activity may be somewhat subdued, however, as some traders may look to get a head start on the long Presidents Day weekend.

On the U.S. economic front, the Labor Department recently released a report showing a modest decrease in U.S. import prices in the month of January.

The Labor Department said import prices dipped by 0.2 percent in January after edging down by a revised 0.1 percent in December.

Economists had expected import prices to slip by 0.2 percent compared to the 0.4 percent increase originally reported for the previous month.

Meanwhile, the report said export prices climbed by 0.8 percent in January after plunging by a revised 3.2 percent in December.

The increase surprised economists, who had expected export prices to edge down by 0.2 percent compared to the 2.6 percent slump originally reported for the previous month.

Not long after the start of trading, the Conference Board is scheduled to release its report on leading economic indicators in the month of January.

The leading economic index is expected to decrease by 0.8 percent in January after slumping by 1.0 percent in December.

With hotter-than-expected inflation data leading to renewed concerns about the outlook for interest rates, stocks moved sharply lower during trading on Thursday. The major averages showed a significant pullback after turning positive over the course of Wednesday’s session.

The major averages regained ground after an initial sell-off but once again came under pressure in the final hour of trading. The Dow slumped 431.20 points or 1.3 percent to 33,696.85, the Nasdaq plunged 214.76 points or 1.8 percent to 11,855.83 and the S&P 500 tumbled 57.19 points or 1.4 percent at 4,090.41.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan’s Nikkei 225 Index slid by 0.7 percent, while Hong Kong’s Hang Seng Index slumped by 1.3 percent.

The major European markets have also moved to the downside on the day. While the German DAX Index has fallen by 0.8 percent, the French CAC 40 Index is down by 0.5 percent and the U.K.’s FTSE 100 Index is down by 0.3 percent.

In commodities trading, crude oil futures are plunging $2.54 to $75.95 a barrel after edging down $0.10 to $78.49 a barrel on Thursday. Meanwhile, after rising $6.50 to $1,851.80 an ounce in the previous session, gold futures are falling $15.90 to $1,835.90 an ounce.

On the currency front, the U.S. dollar is trading at 134.67 yen versus the 133.94 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0633 compared to yesterday’s $1.0674.

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