U.S. stock futures slipped Friday after what’s been called one of the craziest market days in history, showing the difficulty stocks will face in sustaining an advance while the Federal Reserve continues to tighten interest rates.
- Futures on the Dow Jones Industrial Average YM00, -0.36% fell 43 points, or 0.1%, to 30048.
- Futures on the S&P 500 ES00, -0.42% dropped 6.75 points, or 0.2%, to 3675.
- Futures on the Nasdaq 100 NQ00, -0.62% decreased 38.25 points, or 0.4%, to 11046.
On Thursday, the Dow Jones Industrial Average DJIA, +2.83% rose 828 points, or 2.83%, to 30039, the S&P 500 SPX, +2.60% increased 93 points, or 2.6%, to 3670, and the Nasdaq Composite COMP, +2.23% gained 232 points, or 2.23%, to 10649.
The Dow’s 2.8% rise was the largest one-day gain since Nov. 9, 2020.
What’s driving markets
Rich Rieder, the chief investment officer for fixed income at BlackRock, called the gyrations one of the “craziest” in history, coming after data showing inflation running at a hotter-than-expected pace. The S&P 500 had fallen for five consecutive sessions ahead of the CPI report.
“This snapback seems like the product of protective hedges being unloaded in the options market, which generated enough upside momentum to trigger a broader wave of short-covering,” said Marios Hadjikriacos, senior investment analyst at XM.
BlackRock’s Rieder advised investors to consider parking their money in short-term bonds, a point recently echoed by hedge-fund legend Ray Dalio.
Earnings season kicks off with a barrage of results from the banking sector, with JPMorgan Chase JPM, +5.56%, Wells Fargo WFC, +4.62%, Morgan Stanley MS, +3.55% and Citigroup C, +5.17% each scheduled to release results.
Friday will also see the release of key economic data, with September retail sales, and the October release of the University of Michigan consumer sentiment report, due for release. Fed Gov. Lisa Cook also is scheduled due to speak.