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Economic data over the week signaled that while inflation rose
in January, a tight job market and resilience in consumer
spending could offer more room for the Fed to raise borrowing
costs.
Goldman Sachs said it was expecting the Fed to raise rates three
more times this year and by a quarter of a percentage point
each, while money markets are pricing in a terminal rate of 5.3%
by July.
All three main indexes clocked their worst annual losses in 2022
since the 2008 financial crisis, dented by the Fed's fastest
monetary tightening in four decades.
In January, hopes that the central bank might be nearing the end
of its rate-hiking cycle sparked a renewed interest in
beaten-down growth stocks.
However, halfway into February, the indexes have barely been
able to match the optimism seen in January, with the blue-chip
Dow eyeing a 1% loss, as markets price in the Fed to stay
hawkish year-long.
At 6:47 a.m. ET, Dow e-minis were down 186 points, or 0.55%, S&P
500 e-minis were down 31 points, or 0.76%, and Nasdaq 100
e-minis were down 120.5 points, or 0.97%.
Traders will parse commentary by central bank officials
including Richmond Fed President Thomas Barkin and Governor
Michelle Bowman on Friday to assess the Fed's monetary policy
tone looking ahead.
Moderna Inc fell 6.3% in premarket trading after the drugmaker
said its experimental messenger RNA-based influenza vaccine
failed to show it was at least as effective as an approved
vaccine versus less prevalent influenza B.
Manchester United rose 4.4% after hitting a record close in the
previous session. The Telegraph reported on Thursday that Saudi
Arabia has submitted a bid for the British soccer club ahead of
Friday's deadline.
DoorDash Inc climbed 6.2% after the food delivery company said
it would buy back $750 million worth of stock and projected a
key profit measure above Wall Street estimates.
(Reporting by Johann M Cherian in Bengaluru; Editing by Alden
Bentley and Anil D'Silva)
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