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Stock futures edge lower as investors eye economic data, Fed speeches


Stock futures traded lower on Thursday, building on losses from the previous session, as interest rates and recession fears dented market sentiment.

Futures tied to the Dow Jones Industrial Average fell 277 points, or 0.8%. S&P 500 futures and Nasdaq 100 futures lost 0.8 percent and 1 percent, respectively.

Wall Street is coming off a losing session. The S&P 500 fell 1.56% on Wednesday for its worst day since Dec. 15. The Dow lost more than 613 points, or 1.81%. The tech Nasdaq Composite fell 1.24%, recording seven straight days of gains. Bank stocks such as JPMorgan, Bank of America and Wells Fargo were lower, weighing on the broader market.

Disappointing retail sales and a weaker-than-expected producer price index fueled recession fears, sending stocks lower.

On Thursday, investors will weigh more economic data that could provide further guidance on how much the Fed may raise interest rates at its upcoming meeting. Initial jobless claims, new housing starts and the Philadelphia Federal Reserve’s manufacturing survey will be released in the morning. Several central bank leaders, including Fed Vice Chairman Lele Brainard, will also speak during the day about the way forward.

Investors are analyzing the latest data and remarks from the Fed for clues about how high interest rates will go. But while the latest numbers point to a slowdown in inflation, JPMorgan Chase CEO Jamie Dimon thinks rates will top 5%.

“I think there’s a lot of underlying inflation that’s not going to go away that quickly,” Dimon told CNBC’s “Squawk Box” from the World Economic Forum in Davos, Switzerland.

Investors will also be watching key quarterly reports to see if an earnings recession is brewing. Netflix and Truist Financial were among the companies reporting earnings on Thursday.


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