U.S. stock futures experienced minimal changes Thursday night. The Dow Jones Industrial Average saw a slight 0.07% increase while the S&P 500 futures added 0.02% and the Nasdaq 100 futures dropped 0.06%. The casino operator Wynn Resorts observed a nearly 5% decrease in after-hours action following the release of its third-quarter financials, and The Trade Desk suffered a significant 30% plunge after offering a weak revenue forecast for the fourth quarter.
Federal Reserve Chair Jerome Powell’s announcement that the central bank lacks confidence in its inflation-fighting efforts led to a sell-off of stocks. Stock values dropped after Powell expressed his uncertainty in the effectiveness of current monetary policy. The statement had an impact on bond yields, causing the 10-year Treasury to increase by more than 12 points.
Kevin Simpson, founder and chief investment officer of Capital Wealth Planning, expressed the importance of preparing for higher rates in the market until 2025, signaling that the Fed does not intend to cut rates anytime soon. The S&P 500 and the Dow were expected to incur modest losses of 0.3% and 0.5%, respectively, for the week, while the Nasdaq had a modest gain of 0.3%. Additionally, Friday’s economic data would include consumer sentiment insights and remarks from several central bank officials.
