US Stock Futures Decline as S&P 500 Seeks to End Losing Streak

US stock futures dipped on Friday morning as the S&P 500 aimed to break a four-week losing streak, which has been driven by concerns over trade policies, recession risks, and a downturn in large-cap technology stocks, CNBC reports.

Futures linked to the S&P 500 were down 0.3%, while the Dow Jones Industrial Average futures lost 136 points, or 0.3%. Nasdaq 100 futures slipped 0.4%. The declines follow a negative session on Thursday, during which the S&P 500 dropped 0.2%, the Nasdaq Composite fell 0.3%, and the Dow Jones Industrial Average edged down by 11.31 points.

Despite these setbacks, the S&P 500 remains on track for a 0.4% weekly gain, positioning it to break its recent losing streak. The index briefly entered correction territory during its month-long decline but currently sits about 8% below its record high, staying short of the 10% correction level.

A key factor influencing the market this week was the Federal Reserve’s policy decision. While central bank officials maintained their forecast for two interest rate cuts this year, they also raised inflation expectations and lowered economic growth projections. This combination of factors has fueled concerns about stagflation, a scenario in which inflation rises while economic growth slows.

Federal Reserve Chair Jerome Powell noted that ongoing tariff policies could “delay” progress on inflation, contributing to market uncertainty. Investors remain cautious about the impact of trade policies and economic slowdown on corporate earnings.

Several major companies reported disappointing outlooks, adding to market pressure.

• FedEx shares fell over 7% in early trading after the company lowered its earnings guidance, citing “weakness and uncertainty” in the US industrial economy.
• Nike stock dropped by 5% in premarket trading after the company warned of lower-than-expected sales, attributing the decline to tariffs and weakened consumer confidence.
• Lennar, a homebuilder, saw its stock fall 5.3% after issuing a weaker-than-expected forecast for new home orders. The SPDR S&P Homebuilders ETF also declined by more than 2% as a result.

The Dow Jones Industrial Average is on pace for a 1.1% weekly gain, marking its best performance since January. However, the Nasdaq Composite remains down 0.4% for the week, potentially marking its fifth consecutive week of losses—the longest losing streak since May 2022.

Geopolitical factors also weighed on certain stocks. Nomura downgraded PDD Holdings, the parent company of e-commerce platform Temu, citing rising geopolitical risks. Tesla’s stock outlook was also lowered by Morgan Stanley due to weaker auto deliveries.

Outside the US, Asian markets saw mixed performance. Hong Kong’s Hang Seng Index fell by over 2%, while Japan’s Topix extended its winning streak. Meanwhile, European and other global markets responded to economic uncertainties and shifting investor sentiment.