September 26, 2022

Raven Tribune

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Stock futures drop to start in September as market fears of higher interest rates persist

Stock futures drop to start in September as market fears of higher interest rates persist

US stock futures fell on Thursday, the first day of September, as traders continued to worry about a possible Federal Reserve rate hike.

Dow Jones Industrial Average futures were down 187 points, or 0.6%. S&P 500 and Nasdaq 100 futures declined 0.7% and 1.1%, respectively.

Nvidia shares contributed to the losses, falling more than 5% after the chip maker said The US government restricts some sales in China.

These moves follow four consecutive days of losses in the major averages. On Wednesday, the last day of August, the Dow was down about 0.9%. The S&P 500 lost about 0.8%, and the Nasdaq Composite fell about 0.6%.

The Dow closed the month down 4.1%, while the S&P and Nasdaq posted losses of 4.2% and 4.6%, respectively.

Investors are debating whether stocks will once again challenge their June lows in September, a historically weak month for markets, after assessing recent hawkish statements from Federal Reserve officials who showed no signs of easing interest rate hikes.

“If we retest the lows, I think it will happen in September,” SoFi’s Liz Young said Wednesday on CNBC’s “Closing Bell: Overtime.” However, she added, “I think in order to do that, something has to get worse than it was on June 16,” when stocks hit bottom, like earnings reviews that come in worse than investors expect.

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