Futures Pointing To Continued Weakness On Wall Street

Stocks may see initial weakness on Friday, extending the downward move seen over the two previous sessions. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.4 percent.

Concerns about higher treasury yields may continue to weigh on Wall Street after the yield on the benchmark ten-year note climbed above 5 percent for the first time since July 2007.

The ten-year yield has given back ground in early trading but remains elevated at 4.98 percent amid ongoing concerns about the outlook for interest rates.

Overall trading activity may be somewhat subdued, however, with a lack of major U.S. economic data likely to keep some traders on the sidelines.

A report on personal income and spending in the month of September is likely to be in focus next week, as it includes readings on inflation said to be preferred by the Federal Reserve.

With Fed Chair Jerome Powell saying inflation is “still too high” during remarks on Thursday, traders will be looking for a slowdown in the pace of price growth.

The earnings season also continues to pick up steam next week, with a slew of big-name companies due to report their quarterly results.

After ending Wednesday’s session sharply lower, stocks saw significant volatility over the course of the trading day on Thursday. The major averages swung back and forth across the unchanged line before ending the day firmly in the red.

The major averages fell to new lows going into the close of trading. The Dow fell 250.91 points or 0.8 percent to 33,414.17, the Nasdaq slumped 128.13 points or 1.0 percent to 13,186.18 and the S&P 500 slid 36.60 points or 0.9 percent to 4,278.00.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan’s Nikkei 225 Index declined by 0.5 percent, while China’s Shanghai Composite Index fell by 0.7 percent.

The major European markets have also moved to the downside on the day. While the U.K.’s FTSE 100 Index has slumped by 1.1 percent, the French CAC 40 Index is down by 1.3 percent and the German DAX Index is down by 1.4 percent.

In commodities trading, crude oil futures are advancing $0.93 to $90.30 a barrel after jumping $1.05 to $89.37 a barrel on Thursday. Meanwhile, after climbing $12.20 to $1,980.50 an ounce in the previous session, gold futures are inching up $4.50 to $1,985 an ounce.

On the currency front, the U.S. dollar is trading at 149.93 yen versus the 149.80 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0582 compared to yesterday’s $1.0582.