Stock futures were lower on Thursday, extending losses from the previous session, as concerns over interest rates and a recession dented sentiment.
Futures tied to the Dow Jones Industrial Average fell 224 points, or 0.7%. S&P 500 futures and Nasdaq 100 futures were down 0.7% and 0.9%, respectively.
Wall Street is wrapping up a losing session. The S&P 500 fell 1.56% on Wednesday, its biggest one-day drop since Dec. 12. 15. The Dow Jones fell more than 613 points, or 1.81%. The tech-heavy Nasdaq Composite fell 1.24%, snapping a seven-day winning streak. Bank stocks such as JPMorgan Chase & Co, Bank of America and Wells Fargo fell, weighing on the broader market.
Disappointing retail sales and a weaker-than-expected producer price index reading stoked recession fears, sending stocks lower.
On Thursday, investors will weigh more economic data that could provide more clues about how much the Federal Reserve might raise interest rates at its upcoming meeting. Initial jobless claims, housing starts and a Philadelphia Fed manufacturing survey are due in the morning. Several central bank leaders, including Fed Vice Chairman Lyle Brainard, will also speak on the day on the way forward.
Investors have been parsing the latest data and comments from the Federal Reserve for clues about how high rates will go. But while recent data suggests inflation is slowing, JPMorgan CEO Jamie Dimon sees rates moving above 5%.
“I think there’s a lot of underlying inflation that’s not going away so quickly,” Dimon told CNBC’s “Squawk Box” at the World Economic Forum in Davos, Switzerland.
Investors will also be watching key quarterly reports to see if an earnings recession is brewing. Companies such as Netflix, Procter & Gamble and Truist Financial will report earnings on Thursday.