4:18pm: Dow manages to eke out a winning week
The Dow closed Friday down 289 points, 0.8%, at 34,618, the Nasdaq Composite fell 218 points, 1.6%, to 13,708 and the S&P 500 lost 55 points, 1.2%, to 4,450. The Russell 2000 index declined 20 points, 1.1%, to 1,846.
the Dow managed a positive week, but the Nasdaq and S&P 500 each slid for the second week in a row.
As ever, inflation and interest rates are top of mind for investors. On Thursday, the producer price index was reported to have increased a seasonally adjusted 0.7% in August and 1.6% on a year-over-year basis, according to the Department of Labor.
“There was initial investor enthusiasm around inflation data coming in not too far out of expectations. On one hand, the inflation data was hotter than expected, but investors shrugged that off earlier this week thinking that the Fed would not be inclined to raise rates again next week, based on the August inflation data,” said AXS Investments’ Greg Bassuk.
12:05pm: Wall Street nervous ahead of Fed rate decision
US stocks were lower in noon trading in a volatile week ahead of the Federal Reserve interest rate decision next week.
At midday, the Dow lost 190 points to 34,717, while the S&P 500 eased 36 points at 4,469 and the tech-heavy Nasdaq fell 159 points to 13,767.
“The high oil price and US import prices which rise the most in over a year reignite inflationary worries,” IG senior market analyst Bryce Doty said.
“Coupled with a three-month low in the University of Michigan consumer sentiment, US car maker strikes and $4 trillion of simultaneous expiration of stock indices, index futures and options, all weigh on US markets ahead of next week's eagerly awaited FOMC," he added.
Notable movers included shares of Adobe Inc, which slipped 4% after the company’s 3Q financial results beat estimates but its forward guidance disappointed.
9:41am: US stocks consolidate after strong week
US stocks opened lower, consolidating recent gains, but remain on course for a winning week.
Shortly after the opening bell, the Dow Jones Industrial Average was down 33.48 points, 0.1%, at 34,873.63, the S&P 500 was down 18.02 points, 0.4%, at 4,487.08 and the Nasdaq Composite was down 77.68 points, 0.6%, at 13,848.37.
Industrial production rose 0.4% on the month, down from 0.7% in July but better than the 0.2% consensus, adding to a series of resilient economic releases this week.
On a year-over-year basis, production increased 0.2%
Still to come, the University of Michigan will release the preliminary reading of its September consumer sentiment index, which economists expect to edge down to 69.1 from 69.5.
Instacart has raised the estimated price range for its initial public offering, in the latest sign of a warming market for US flotations.
The online grocery delivery company has increased its range to $28 to $30 per share, after previously targeting between $26 and $28, according to a filing.
At the top end, that would raise $660 million for the San Francisco-based company, compared to an earlier target of up to $616mn.
Instacart’s move follows this week’s Arm IPO which saw shares in the chip designer fly 25% on the first day of trading on Thursday.
Shares in Arm rose a further 4.75% at the open on Friday.
7:00am: Steady start expected on Wall Street
US markets look set to make steady progress on Friday, after strong gains on Thursday, as investors pin their hopes on an economic soft landing after a batch of robust data this week.
In pre-market trading, futures for the Dow Jones Industrial Average were 0.3% higher, while those for the S&P 500 rose 0.1%, while contracts for the Nasdaq 100 futures were down 0.1%.
The upbeat mood has largely been driven by a brighter global economic outlook reinforced by stronger-than-expected industrial production and retail sales figures in China today.
But it could be a volatile session with the expiry of around $3.4 trillion in stock options - so-called triple witching.
According to data from Nomura, 10 of the past 11 expiration days in September saw the S&P 500 finish lower.
Arm looks to remain in the headlines with the stock up a further 7% in pre-market trading after rising 25% on its first day of trading following its IPO.
Elsewhere, a United Auto Workers strike has shut down three key plants impacting operations for GM, Ford and Stellantis.
Ford shares are down 1.7% in premarket trading, GM is off 1.5% but Stellantis is holding firm, up 0.7%.
Disney has denied it is considering selling ABC after a report on Bloomberg.
“"While we are open to considering a variety of strategic options for our linear businesses, at this time The Walt Disney Company (NYSE:DIS) has made no decision with respect to the divestiture of ABC or any other property and any report to that effect is unfounded,” the company said in a statement late Thursday.