The US stock market is set to open lower on Friday as investors weigh the Federal Reserve’s hawkish projections and signs of a slowing economy. Despite reaching record closing highs on Thursday, fueled by a tech stock rally, the Dow Jones Industrial Average is on track for a weekly decline. Recent data showed easing inflation in May and a rise in unemployment claims, adding to the uncertainty surrounding the market.
Investors are keeping an eye on comments from Federal Reserve officials and the University of Michigan’s Consumer Sentiment survey to gauge the economic direction. Futures indicate a decrease in Dow e-minis, S&P 500 e-minis, and Nasdaq 100 e-minis. Semiconductor stocks like Broadcom and Nvidia are performing well, with their index hitting an all-time high. However, pre-market declines in major tech companies are raising concerns about the sustainability of the rally amid increasing recession risks.
Investors must navigate uncertainty when making investment decisions. While hopes for easing Fed policy and strong megacap stocks have driven major rallies, the sensitivity to economic shifts is evident. Fund movements are showing mixed market sentiment, with Adobe experiencing a surge in shares while Sirius XM saw a decline after being removed from the Nasdaq 100. Overall, markets face uncertainties due to the Fed’s projections and economic data signals, highlighting the need for caution and careful consideration of investment decisions.
