US stock futures lower as Fed-induced rally runs out of steam
US stock futures lower as Fed-induced rally runs out of steam
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Recession fears persist amid inflation and trade wars
President Donald Trump did not rule out the possibility of a recession in a recent Fox News interview, amid his administration's continuing trade war.
U.S. stock futures point to a lower opening after failing on Thursday to muster enough strength to extend the Federal Reserve-induced rally.
Futures tied to the broad S&P 500 dropped -0.23%. Blue-chip Dow futures fell -0.24%. Tech-heavy Nasdaq futures slipped 0.29%.
Stocks rallied Wednesday afternoon after the Fed left interest rates unchanged, as expected, but still predicted two more rate cuts this year despite tariffs that could boost inflation. However, the rally ran out of steam and investors scattered to the sidelines, allowing stocks to drift lower.
Even with Thursday's dip, the S&P 500 is on pace for a weekly gain after dropping for four consecutive weeks. The Dow is on track for its best weekly gain since January, but the Nasdaq remains in the red. The Nasdaq's on track for its fifth straight losing week and its longest stretch of weekly losses since May 2022.
Corporate news
Nike topped analysts' estimates for earnings and revenue in the company's fiscal third-quarter.
Micron beat analysts' forecasts in the second quarter and expects to do so again in the third quarter.
FedEx earnings missed analysts' expectations in the delivery company's fiscal third-quarter.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
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