The stock market is enduring a gloomy period, as evidenced by the S&P 500‘s descent for five consecutive sessions, resulting in a disheartening performance that could lead to its worst week in almost half a year.
Impending Losses for Major Indices
Overnight trading witnessed little fluctuation in futures for major indices:
- Dow Jones Industrial Average crept up a meager 13 points.
- S&P 500 futures remained stagnant.
- Nasdaq 100 futures also showed no notable movement.
Netflix’s Lackluster Performance
After releasing quarterly earnings that exceeded expectations on both the top and bottom lines, Netflix stocks plummeted by over 4% in extended trading. While subscriber numbers surged by 16% year-over-year, the streaming giant announced it will cease reporting paid memberships in 2025.
Market Sell-Off Driven by Rate Hike Expectations
The market’s relentless decline has been primarily attributed to dwindling hopes for an imminent rate cut. Economists and strategists now believe the Federal Reserve will likely postpone any reductions until at least September, and there is rising apprehension that rates may remain elevated throughout 2023. Minneapolis Fed President Neel Kashkari, who has no voting power in rate decisions this year, reinforced this view on LA News Center, emphasizing the necessity for patience and indicating that the first rate cut may not materialize until 2025.
S&P 500’s Dire Position
The S&P 500 is an alarming 4.8% below its 52-week high, and its current trajectory suggests a potential decline into its third consecutive negative week. This would mark its steepest weekly loss since late October 2023.
Dow and Nasdaq Also Struggling
The prestigious Nasdaq Composite, known for its tech focus, is poised for its fourth consecutive losing week – the longest such streak since December 2022. Meanwhile, the blue-chip Dow faces a 0.6% weekly decline.
Upcoming Earnings Reports on Friday
Anticipation remains high for upcoming quarterly results from several prominent companies, including:
- Consumer products behemoth Procter & Gamble
- Oilfield services provider SLB
- Financial services giant American Express
