- Nasdaq closes 1% lower
- Adobe down 13% on weak guidance
- Rate cut could be pushed to July
4:05pm: Rate cut fears weigh on sentiment
US stocks finished Friday on a sour note as two hot inflation reports released this week spurred concerns that the Federal Reserve will hold interest rates higher for longer.
The Nasdaq finished 1% lower at 15,973 points while the S&P 500 shed 0.7% at 5,116 points and the Dow Jones was down 0.5% at 38,714 points.
Major movers included Adobe, which tanked 13.7% on its weak sales guidance, and Verb Technology Company (NASDAQ:VERB), which added 215.9% on the launch of its new social media shopping integration with Facebook and Instagram.
After hitting a record-high price near $74,000 yesterday, Bitcoin finished the day lower at $68,722.
12:25pm: Uncertainty growing
At the midday point of the trading day, stocks were broadly lower as investors assessed the impact of high inflation figures on the Federal Reserve's upcoming policy decision.
The Nasdaq slipped below the 16,000 level to hit 15,966 at midday, a loss of 1%, while the S&P 500 and the Dow Jones Industrial Average both fell 0.7% and 0.5% respectively.
Concerns grew regarding the potential challenges of addressing persistent inflation, potentially affecting the case for future interest rate cuts. With attention shifting to the February PCE report for insights into inflation trends, uncertainty prevails ahead of the Fed's decision next week.
Stocks were in a "gloomy mood" to finish off the week, IG's Chris Beauchamp noted.
“US consumer sentiment is weakening as gas prices rise, the Empire State index fell sharply, and this week’s inflation readings have come in hotter than expected," Beauchamp wrote.
"This isn’t the kind of cheery picture that can prop up equity markets looking desperately for a new catalyst to drive a new phase in this rally. Aside from the Russell 2000, US markets are broadly lower, and with the Fed meeting now in everyone’s sights we could see this extend into the first part of next week at least.”
9:44am: Wall Street opens lower as Adobe shares tumble
US stocks have opened lower on Friday as Wall Street continues to suffer a loss of confidence after Thursday's higher-than-expected inflation reading.
The Dow Jones is down around 65 points at 38,840, while the S&P 500 and the Nasdaq are down 26 and 109 points respectively.
Adobe slipped opened around 12% lower after it issued weak revenue guidance and paid Figma US$1 billion for the two groups' failed acquisition plan.
Other movers include Rivian Automotive (+5%), Micron Technology (+1.5%) and Ulta (-8%).
Analysts have warned Friday could see some volatility in the markets as it sees the simultaneous expiration of futures and options contractions on indexes and stocks.
Known as "triple witching" the process can cause increased volumes and elevated prices for underlying assets.
8:31am: Wall Street to open higher after Thursday's slip
Wall Street is set to open slightly higher on Friday, with the Dow Jones currently up 52 points, or 0.13%, in premarket trading.
US stocks fell on Thursday after a hotter-than-predicted inflation reading left investors concerned about a delay to interest rate cuts.
David Morrison, senior market analyst at Trade Nation said: 'If fresh inflation data continues to tick upwards (and there’s a Core PCE update at the end of this month) then rate cut predictions could be pushed out further.
"If so, then investors may want to cut their exposure to US equities. Next week’s Fed meeting with its quarterly Summary of Economic Projections could be key."
The S&P 500 and Nasdaq both dropped around 0.3%, while the Dow Jones fell 0.4% to finish.
Nvidia experienced its second consecutive negative session after closing 3.7% lower but is attempting to hold flat in premarket trades.