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Futures down: Dow 0.2%, S&P 500 0.2%, Nasdaq 0.4%
Nov 14 (Reuters) - U.S. stock index futures dipped on
Friday, signaling a fresh round of selloff on Wall Street after
hawkish comments from Federal Reserve officials added to doubts
about an interest rate cut in December.
The three major U.S. stock indexes posted their steepest
daily percentage declines in over a month on Thursday, with
heavyweight tech stocks leading the slump, after a growing
number of Fed policymakers signaled reticence on further easing.
The longest U.S. government shutdown in history, which ended
on Thursday, has led to an economic data drought, causing the
Fed and traders to fly blind and renewing concerns about the
health of the labor market and the inflation trajectory.
At 5:30 a.m. ET, Dow E-minis were down 79 points, or
0.17%, S&P 500 E-minis were down 14.75 points, or 0.22%
and Nasdaq 100 E-minis were down 117 points, or 0.47%.
Despite the reopening, some data gaps are likely to be
permanent with the White House casting doubt on employment and
Consumer Price Index reports for October ever being released.
"Market sentiment is swinging wildly this week, reflecting a
clash of narratives that has left investors struggling to find
direction," said Daniela Hathorn, senior market analyst at
Capital.com.
Fed speakers on Thursday added to dimming expectations of
policy easing. St. Louis President Alberto Musalem said caution
was needed, while Cleveland's head, Beth Hammack, said
restrictive policy would help tackle inflation.
Minneapolis President Neel Kashkari told Bloomberg News he
was undecided before next month's meeting and had been against
October's rate cut.
Market expectations for a 25 point rate cut in December fell
to 49.6%, from last week's 67%, according to CME Group's
FedWatch tool.
Technology and AI stock valuation worries have weighed on
markets in recent weeks, with the Nasdaq set for a second
consecutive week of losses.
The CBOE volatility index, Wall Street's fear gauge, touched
a one-week high earlier and was last up 1.11 points at 21.1.
Applied Materials ( AMAT ) shares dropped 4.9% in premarket
trading after the company flagged expectations of weaker China
spending next year on tighter U.S. export control curbs.
Other chipmakers also fell, with AI bellwether Nvidia ( NVDA )
down 1.1%. Broadcom ( AVGO ), Intel ( INTC ) and
Advanced Micro Devices ( AMD ) fell between 0.4% and 0.9%.
Nvidia's ( NVDA ) results next week could further break or make the
rally that has been the main driver behind indexes hitting
all-time record highs this year.
Warner Bros Discovery ( WBD ) shares rose 3.7%. The
entertainment company said it had amended CEO David Zaslav's
employment agreement amid a strategic review of its business.
Cidara Therapeutics ( CDTX ) jumped 87% after a Financial
Times report that Merck ( MRK ) was nearing a deal to buy the
biotechnology company.