U.S. stock market index futures traded lower Thursday, building on the losses from the previous session, as rate and recession fears dented market sentiment. Futures tied to the Dow Jones Industrial Average fell 224 points, or 0.7%. S&P 500 futures and Nasdaq 100 futures shed 0.7% and 0.9%, respectively. Wall Street is coming off a losing session. The S&P 500 tumbled 1.56% on Wednesday for its worst day since Dec. 15. The Dow shed more than 613 points, or 1.81%. The tech-heavy Nasdaq Composite fell 1.24%, snapping seven-straight days of gains. Bank stocks such as JPMorgan, Bank of America and Wells Fargo slid, weighing on the broader market. Disappointing retail sales and a weaker-than-expected producer price index reading ignited recession fears, sending stocks lower. On Thursday, investors will weigh more economic data that could give further clues as how much the Fed may raise interest rates in its upcoming meeting. Initial jobless claims, housing starts and the Philadelphia Federal Reserve’s manufacturing survey will be released in the morning. Several central bank leaders including Fed Vice Chair Lael Brainard will also speak throughout the day on the path forward. Investors have been parsing through the latest data and Fed remarks for clues on how high rates will go. But, while recent numbers point to easing inflation, JPMorgan Chase CEO Jamie Dimon thinks rates will top 5%. “I think there’s a lot of underlying inflation, which won’t go away so quick,” 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 there is an earnings recession brewing. Netflix and Truist Financial are among companies reporting earnings on Thursday. Shares in the Asia-Pacific traded mixed on Thursday after tracking losses on Wall Street overnight. In Japan, the Nikkei 225 traded down 1.44% to close at 26,405.23, and the Topix ended down 1% at 1,915.62 after Japan recorded another trade deficit for December, one day after the Bank of Japan surprised markets by keeping its yield curve tolerance band unchanged. The yen currently stands at at 128.14 against the U.S. dollar. South Korea’s Kospi inched up 0.51% to close at 2,380.34 while the Kosdaq added 0.16% to 712.89. Australia’s S&P/ASX 200 edged up 0.57% to 7,435.3. Hong Kong’s Hang Seng index fell 0.48%. Mainland China’s Shanghai Composite climbed 0.49% to 3,240.28 and the Shenzhen Component was up 0.87% to 11,913.26. Oil futures fell Thursday, extending losses from the previous day, as a surprise jump in U.S. crude stocks weighed on the market along with fears of a recession that were heightened by disappointing U.S. retail sales and output data. Brent crude futures lost 59 cents, or 0.69%, to $84.39 a barrel, after earlier easing to $83.76. U.S. West Texas Intermediate (WTI) crude futures declined 67 cents, o0.84%, to $78.81 a barrel. It earlier fell to a low of $78.13. Gold prices inched higher on Thursday as investors weighed the chances of the U.S. Federal Reserve slowing its pace of interest rate hikes, while a firmer dollar capped bullion’s gains. Spot gold was up 0.1% at $1,906.01 per ounce, as of 0252 GMT. U.S. gold futures fell 0.1% to $1,906.00.
Roodeweg 222, Willemstad, Curaçao