(Reuters) -Wall Street’s main indexes were poised for a subdued open on Friday as investors awaited a fresh inflation reading next week after recent economic data stoked worries interest rates could remain higher for longer.
Stronger-than-expected services activity data and a fall in weekly jobless claims have dented investor sentiment, dragging the S&P 500 and Nasdaq 1.4% and 2% lower so far this week, respectively.
The Consumer Price Index reading for August is due on Sept. 13, while the Federal Reserve’s policy decision is scheduled for Sept. 20.
“This month of September so far has taken the path of a negative outlook on rates, meaning that the Fed will probably continue to raise rates to combat the stubborn growth of the economy in the U.S.,” said Peter Andersen, founder of Andersen Capital Management
Traders see a 93% chance of interest rates staying at current levels in September, while pricing in a 55.4% chance for a pause in rate hikes in the November meeting, according to CME FedWatch Tool.
Shares of Apple (NASDAQ:AAPL) edged 0.1% lower in premarket trading after a two-day selloff following news that Beijing had ordered central government employees in recent weeks to stop using iPhones at workplaces.
Another report on Friday said China was expanding iPhone restrictions to local governments and state-owned companies.
Wall Street analysts see a small hit to Apple’s revenue this year from the curbs, with Morgan Stanley saying the worst case scenario was a 4% drop.
At 8:20 a.m. ET, Dow e-minis were down 24 points, or 0.07%, S&P 500 e-minis were down 3.5 points, or 0.08%, and Nasdaq 100 e-minis were down 19.5 points, or 0.13%.
Investors also digested mixed commentary from several Fed speakers on Thursday.
New York Fed President John Williams kept his options open over future interest rate policy while Dallas Fed President Lorie Logan said though it “could be appropriate” to skip a rate hike in the upcoming meeting, more policy tightening might be needed.
San Francisco Fed President Mary Daly is due to speak later in the day.
Among individual stocks, Faraday Future Intelligent Electric rose 4.4% before the bell. The electric-vehicle maker said there were efforts to spread misinformation about the company and manipulate market sentiment.
Adobe (NASDAQ:ADBE) rose 1.7% after Mizuho upgraded the software firm to “buy” from “neutral”.
DocuSign (NASDAQ:DOCU) added 1.0% as the e-Signature product provider beat second-quarter results estimates and raised its annual revenue forecast.
GameStop (NYSE:GME) fell 1.4% on a report that the U.S. Securities and Exchange Commission was investigating the videogame retailer’s chairman, Ryan Cohen.
Kroger (NYSE:KR) lost 1.3% after the big-box retailer reported a quarterly net loss as it took a $1.4 billion charge related to a nationwide opioid settlement.
Source: Economy - investing.com
