New York, NY- Stock futures in the United States remained flat Thursday night after failing to extend the previous day’s rally driven by the Federal Reserve. Futures tied to the S&P 500 showed little change, while Dow Jones Industrial Average futures dipped by 0.04% and Nasdaq 100 futures slipped by 0.02%. This comes after a day where major averages saw losses, with the S&P 500 dropping 0.2%, the Nasdaq Composite falling by 0.3%, and the Dow Jones losing 0.03%.
Despite the Federal Reserve policymakers maintaining their forecast for two rate cuts in the year, they raised their inflation outlook and adjusted their economic growth expectations during Wednesday’s session. This shift in forecast has raised concerns of stagflation, a situation where inflation rises as economic growth slows down. The uncertainty surrounding President Trump’s tariff policies has been causing turbulence in the stock market, with Fed Chair Jerome Powell acknowledging that tariffs may hinder progress in controlling inflation.
According to Michael Green, chief strategist at Simplify Asset Management, companies are feeling the effects of tariff worries with increased confusion and uncertainty affecting their planning, capital spending, and hiring decisions. This hesitation from companies is translating into a slowdown in various sectors, impacting overall market performance. The Nasdaq remains in correction territory, down more than 10% from its recent peak, while the S&P 500 is on track for a slight increase for the week and poised to end a four-week losing streak. The Dow is expected to see a 1.1% gain, its best performance since late January, while the Nasdaq faces its fifth straight losing week with a 0.4% decrease.
The market continues to navigate through a challenging landscape marked by tariff uncertainties, inflation concerns, and fluctuating economic growth projections. Investors are closely monitoring developments in trade policies and the Federal Reserve’s decisions to anticipate future changes in the market landscape. The coming days will be crucial in determining whether the current trends will continue or if there will be significant shifts in market dynamics.