U.S. Stock Futures Suffered Losses on Friday Morning

U.S. stock futures declined on Friday morning. Nevertheless, the major equity indexes still headed for weekly advances as traders took favorably the central bank’s measured first move on raising interest rates.

Contracts on the S&P 500 fell. The index was on course to post its first weekly gain in three weeks, and its biggest since November 2020, based on closing levels on Thursday. 

The S&P 500 gained 1.2% to 4,411.67. It rose more than 3% in the previous two sessions, while the Dow Jones Industrial Average posted back-to-back surges of more than 500 points. 

In the meantime, shares of GameStop plunged after the retailer delivered a wider-than-expected fourth-quarter loss. Apart from GameStop, other “meme stocks” including AMC Entertainment also fell in sympathy. 

FedEx’s stock also declined after the company posted quarterly earnings results on Thursday afternoon. These reflected lower-than-expected profits, as various costs more than offset its price increases to clients. 

U.S. stock futures and investors

As previously mentioned U.S. stock futures suffered losses on Friday morning. 

For U.S. equity investors broadly, news this week that the Federal Reserve opted for a 25 basis point rate hike and charted out a route toward six additional rate hikes this year helped provide clarity regarding the future monetary path and removed an overhang of uncertainty. 

On Friday, St. Louis Fed’s President Jim Bullard stated that he wanted the central bank to more swiftly raise interest rates. He also noted that it is better to reduce the central bank’s $9 trillion balance sheet in order to reduce inflation.

He was the only member of the Federal Open Market Committee (FOMC) to disagree with the Fed’s decision this week. Jim Bullard wanted the central bank to raise interest rates by 50 basis points. He also wanted the Federal Reserve to implement a plan to reduce the balance sheet.

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