The future of stock prices remained uncertain on Thursday evening, following a major sell-off the previous day. This was the worst performance for the Dow Jones Industrial Average (Dow) since March 2023, with the index dropping over 1.5%.
Early signs on Friday showed little change for major indexes. The Dow futures barely budged, while the S&P 500 futures rose slightly and the Nasdaq 100 futures edged up a fraction.
The market’s decline on Thursday came despite strong earnings and a stock split announcement from chipmaker Nvidia, a major industry leader. This positive news failed to lift the broader market, with many companies actually experiencing losses.
Several factors contributed to the downturn. Minutes from the Federal Reserve’s recent meeting revealed concerns about inflation, leading investors to believe interest rates might not be cut as anticipated. Additionally, better-than-expected economic data suggested the economy might be stronger than previously thought, further dampening hopes for rate cuts.
This week, the S&P 500 is on track for a small decline, while the Dow is expected to see a more significant drop. The Nasdaq, however, is holding steady with a slight gain.
Investors will be keeping an eye on upcoming economic reports on Friday, including data on durable goods and consumer sentiment, which could influence market direction.
