Written by Peter Norse
Investing.com – U.S. stocks are expected to open lower on Friday, with investors worried about the Federal Reserve’s hawkish interest rate path and the possibility of a sharp economic downturn.
At 07:00 ET (11:00 GMT), the contract was down 375 points, or 1.2%, trading down 45 points, or 1.3%, and down 160 points, or 1.4%.
Major stock averages closed lower on Thursday, with blue-chips down more than 100 points or 0.4%, broadband down 0.8%, and particularly heavy tech down 1.4%.
These three indicators are on their way to close the week with losses of approximately 3%, and their fifth week in the sixth after it decided to raise interest rates significantly again, noting that the record price will continue to rise next year and will remain at these levels. High levels for longer than previously expected.
Goldman Sachs lowered its year-end target for the benchmark S&P 500 index to 3600 from 4300, suggesting that the Fed’s shift in interest rate expectations will affect US stock valuations.
The influential investment bank said that risks to its latest forecast remain skewed to the downside due to the increased prospects of a recession.
Investors will focus on the latest US business data for clues about how US companies are coping with rising and rising interest rates.
September, due at 09:45 EST (13:45 GMT), is expected to show a reading of 51.1, slightly down from the previous reading.
It is expected to show a reading of 45 for September, up slightly from 43.7 last month.
In Europe, equivalent data showed that the slowdown deepened in September, sliding to a 20-month low.
In corporate news, Costco (NASDAQ:) stock fell more than 3% before marketing after the major retailer reported shrinking gross margins in the current quarter as it struggles with rising shipping and labor costs.
Boeing (NYSE:) has agreed to pay $200 million to settle a Securities and Exchange Commission fee that it misled investors about the safety of its 737-MAX aircraft.
Oil prices fell on Friday, approaching this year’s lows and on course for a fourth consecutive weekly decline after a series of interest rate hikes around the world, led by the Federal Reserve, heightened fears of a global economic slowdown, hurting energy demand. .
The rig count and the CFTC round ended the following week in the session.
By 07:00 ET, the futures contract was down 3.2% at $80.80 a barrel, while the contract was down 2.9% at $87.84.
In addition, it was down 1.8% at $1,651.00 an ounce, while trading was down 0.8% at 0.9753.