Stock futures fall as investors look to economic data, Fed speeches

Stock futures traded lower on Thursday, building on the previous session’s losses, as rate and recession fears weighed on market sentiment.

Futures for the Dow Jones industrial average fell 277 points, or 0.8%. S&P 500 futures and Nasdaq 100 futures fell 0.8% and 1%, respectively.

Wall Street is coming off a losing session. The S&P 500 fell 1.56% on Wednesday, its worst day since Dec. 15. The Dow fell more than 613 points, or 1.81%. The tech-heavy Nasdaq Composite fell 1.24%, snapping seven days of gains. Bank stocks such as JP Morgan, Bank of America and Wells Fargo fell, 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 additional economic data that could provide further clues as to how much the central bank might raise interest rates at 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 Chairman Lael Brainard, will speak throughout the day on the path forward.

Investors are sifting through the latest data and Fed comments for clues on how higher rates will go. But while the latest numbers show inflation is slowing, JP Morgan Chase CEO Jamie Dimon thinks rates will stay at 5%.

“I think there’s a lot of underlying inflation,” Dimon told CNBC’s “Squawk Box” from the World Economic Forum in Davos, Switzerland.

Investors will look to key quarterly reports to see if earnings stagnation is brewing. Netflix and Truist Financial are among the companies reporting earnings on Thursday.

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