Dow futures drop over 300 points on investor angst over expected aggressive central bank action into 2023
U.S. stock futures pointed to sharp losses at the start of trading for Wall Street on Friday, amid investor expectations that central banks will continue to raise interest rates aggressively despite stiff economic headwinds.
Investors took a read on central banks this week and decided that aggressive tightening aimed at bringing down high inflation will continue even if economies are contracting. U.S. stocks are set for losses of around 1% for the week, with the Nasdaq Composite looking at a drop of nearly 1.8%, as of Thursday’s close.
Wednesday’s Federal Reserve hike and hints of more on the way was followed by rate increases and similar signals from the European Central Bank and Bank of England on Thursday, while weaker-than-expected retail sales data only added to fears over a weakening U.S. economy.
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