Wall Street Set for Downbeat Session, Fed Comments in Focus

Last Updated: Friday, August 19, 2022 9:23 AM | MT Newswires

US stocks were set to open in red territory Friday as traders monitored more comments from Federal Reserve officials for clarity on the direction of future monetary policy.

Dow Jones Industrial Average futures fell 0.7%, S&P 500 futures declined 0.9%, and Nasdaq futures were down 1%.

Federal Reserve officials said the central bank remains committed to raising interest rates to combat high inflation while offering mixed signals on the potential pace of rate increases for September.

Richmond Federal Reserve President Thomas Barkin is scheduled to speak at the Maryland Association of Counties 2022 Summer Conference at 9 am ET.

Oil prices slumped, with front-month global benchmarks North Sea Brent crude down nearly 2% and US West Texas Intermediate crude down a little over 1%, capping a two-day rally on signs of improving US demand with a sharp drop in crude inventories.

There are no major economic data due for release.

In other world markets, Japan's Nikkei closed 0.04% lower, Hong Kong's Hang Seng closed 0.05% higher, and China's Shanghai Composite closed 0.6% lower. Meanwhile, UK's FTSE 100 gained nearly 0.3% and Germany's DAX index declined 0.6% in Europe's early afternoon session.

In equities, shares of Foot Locker (FL) were nearly 25% higher pre-bell after the company signed an inventory deal with Fanatics. Bill.com (BILL) shares increased nearly 17% after the company posted a narrower fiscal Q4 loss. Axsome Therapeutics (AXSM) shares rose 21% after the company secured US Food and Drug Administration approval for a treatment for major depressive disorder.

On the losing side, Bed Bath & Beyond (BBBY) shares tumbled 37% following news report that the company has hired an adviser to help manage its debt load. Wayfair (W) shares fell nearly 8% after the company said it will reduce its global workforce by 5%. Capstone Green Energy (CGRN) shares slumped nearly 41% after the company started an underwritten public offering of common stock and warrants.

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