Nasdaq 100: Futures Slide Toward Worst Week Since March; Bitcoin Drops Below $93K

Stock Futures Decline in Premarket Trade as Wall Street Faces Turbulent Week

U.S. stock futures are declining in premarket trading as Wall Street contends with a challenging week. The Dow Jones Industrial Average is on track for its worst week since March 2023, while traders also grapple with inflation concerns, Federal Reserve policy, and potential government gridlock.

At 14:17 GMT, Dow Futures are trading 42657.00, down 140.00 or -0.33%. S&P 500 index Futures are at 5903.50, down 30.50 or -0.51% and Nasdaq Futures are trading 21225.50, down 153.50 or -0.72%.

Broad-Based Indexes: A Tough Week for Stocks

Dow Jones futures point to a weekly decline of over 3.4%, with Thursday’s 15-point gain providing little relief after Wednesday’s 1,100-point drop. The S&P 500 and Nasdaq futures are also down roughly 3% this week, reflecting broad-based selling across sectors. Markets remain under pressure after the Fed signaled it would cut interest rates fewer times in 2024 than previously anticipated.

Sector Performance: Key Movers in Focus

Corporate earnings and guidance are driving significant premarket action. Novo Nordisk is tumbling 19% after disappointing weight-loss drug trial results, while rival Eli Lilly is up more than 6%. FedEx is rising 8.5%, boosted by a freight spinoff announcement and better-than-expected quarterly earnings.

Conversely, Nike shares are down over 7%, weighed by year-over-year declines in revenue and earnings. In the commodities space, Occidental Petroleum is up 2% following new investments by Warren Buffett’s Berkshire Hathaway.

Stock Volatility: Rising Fear in the Market

The CBOE Volatility Index (VIX), Wall Street’s fear gauge, is up 9% in premarket trading at 26.16. Earlier this week, the VIX surged 74%, marking its second-largest spike in history as markets reacted to the Fed’s cautious stance on rate cuts. The sharp rise underscores heightened investor anxiety amid economic and political uncertainties.

Economic Reports: Mixed Signals on Inflation

Friday’s personal consumption expenditures (PCE) price index rose 2.4% year-over-year in November, coming in slightly below economists’ expectations. While this signals some easing inflationary pressure, it hasn’t significantly lifted market sentiment. The Fed’s commitment to cautious rate cuts continues to weigh on investor confidence.

Cryptocurrency: Bitcoin and Related Stocks Slide

Bitcoin is down 9% in premarket trading, falling below $93,000 after hitting an all-time high of $108,000 earlier this week. The digital asset’s decline is pressuring crypto-linked stocks, with MicroStrategy and Coinbase each down over 5%. The broader weakness in cryptocurrency mirrors the equity market’s reaction to the Fed’s rate outlook.

Market Forecast: Where Could the Market Be Headed Next?

The short-term outlook remains bearish as inflation concerns, Federal Reserve policy, and political uncertainties persist. The potential government shutdown and mixed corporate earnings add to the cautious tone. Traders should monitor developments in Washington and upcoming economic data for potential signs of relief.

For now, volatility remains elevated, and the risk of further downside suggests markets could remain under pressure in the near term.

More Information in our Economic Calendar.