Written by Peter Norse
Investing.com – U.S. stocks are expected to open lower on Friday, heading for another losing week on concerns about future economic growth, exacerbated by an earnings warning from delivery giant FedEx.
At 07:00 ET (11:00 GMT), the contract fell 190 points, or 0.6%, traded 27 points, or 0.7%, and fell and fell 100 points, or 0.8%.
Major stock averages closed lower on Thursday, heading for a fourth loss week in five, with heavy tech leading the way, on course to drop 4.6% this week, their worst weekly drop since June. The broad index is down 4.1% so far this week, while the benchmark is set to fall 3.7% so far.
This latest bout of weakness comes as August proved to be hotter than expected, which may give reason to continue on the path of strong monetary tightening, likely at the expense of future economic activity.
The Fed is widely expected to raise its benchmark interest rate by another 0.75 percentage points next week, as it did in June and July, but the potential for a full 100 basis point rise has increased since the CPI was released on Tuesday.
Adding to the negative sentiment was the news that FedEx (NYSE:), an industry leader, announced disappointing and withdrew its financial forecasts it had issued just three months ago, citing slowing global demand. Its stock fell 19% before the sale.
The (NYSE:) gap could be in focus after Kanye West moved to end the partnership between his Yeezy company and the clothing chain, saying it had failed to meet its contract obligations.
On the economic front, the September reading is released at 10:00 ET (14:00 GMT), and 60 is expected, which will be higher than the 58.2 in the previous reading.
Oil prices rose on Friday, rebounding after heavy losses in the previous session, but were heading for a third consecutive week of losses amid concerns that aggressive monetary tightening will hurt global growth and thus fuel demand.
The crude oil market was also hit hard in the wake of hot US inflation data, which makes oil more expensive for buyers using other currencies.
By 07:00 ET (11:00 GMT), futures were up 0.5% at $85.47 a barrel, while the contract was up 0.7% at $91.45. Both contracts were down about 4% on Thursday, and were set to lose nearly 2% for the week.
In addition, it was down 0.2% at $1,674.75 an ounce, while trading was down 0.1% at 0.9987.