Stocks - U.S. Futures Fall as Fed Statement Dampens Demand
Investing.com – U.S. futures were lower on Friday, as expectations of steady Federal Reserve rate hike dampened investor appetite for risk.
The S&P 500 futures fell 16 points or 0.59% to 2,792.25 as of 6:51 AM ET (11:51 GMT) while Dow futures were down 136 points, or 0.52%, to 26,064.0. Meanwhile tech heavy Nasdaq 100 futures decreased 62 points, or 0.87%, to 7,103.50.
The Fed kept rates steady on Thursday as expected, but indicated it would continue to slowly and steadily increase interest rates.
The less-than-cautious tone surprised investors, some of whom were expecting a more dovish stance after steep stock declines in October.
Still, expectations of a hike are priced in at around 80%, according to Investing.com’s Fed Rate Monitor Tool.
Walt Disney (NYSE:DIS) was among the top gainers in pre-market trading, surging 2.16% after posting higher than expected earnings after the close on Thursday.
Dropbox Inc (NASDAQ:DBX) increased 7.52% after it beat economists’ expectations, while Qualcomm (NASDAQ:QCOM) inched up 0.10%.
Elsewhere, Tesla (NASDAQ:TSLA) fell 0.71% while General Electric (NYSE:GE) declined 3.85% and Yelp Inc (NYSE:YELP) slumped 30.80% after reporting a lower outlook and a miss on revenue.
In economic news, the producer price index comes out at at 8:30 AM ET (13:30 GMT), while at 10:00 AM ET (15:00 GMT), the University of Michigan will release its preliminary measure of November consumer sentiment.
In commodities, gold futures fell 0.52% to $1,219.80 a troy ounce while crude oil futures decreased 1.62% to $59.69 a barrel. The U.S. dollar index, which measures the greenback against a basket of six major currencies, was up 0.05% to 96.60.