Stock futures slipped on Wednesday as traders fretted about the slowdown and the possibility of a longer-than-expected hiking cycle by the Federal Reserve.
Futures linked to the Dow Jones industrial average were down 20 points, or 0.06%, while S&P 500 futures were down 0.2% and Nasdaq 100 futures were down 0.4%.
Wall Street is coming off another rough session, with the Dow down more than 350 points, or 1.03%. The S&P 500 and Nasdaq Composite lost 1.4% and 2%, respectively.
Investors are losing hope that the Fed can engineer a so-called soft landing that will successfully reduce inflation and avoid recession through higher rates. Instead, concerns revolve around the state of the economy and the possibility of a downturn in 2023.
“Overall, financial indicators point to a recession on the horizon,” Wells Fargo’s Azhar Iqbal wrote in a note to clients Wednesday. Coupled with an inverted yield curve, markets are clearly poised for a recession in 2023.”
Investors await additional economic data this week for clues on what to expect from the central bank. Mortgage loan application data showed a decline last week even as rates fell.
The end of the earnings season continued with a solid report from Campbell Soup.