Nasdaq futures continue to fall, off 0.75%, with S&P 500 futures down 0.55%

Nasdaq futures continue to fall, off 0.75%, with S&P 500 futures down 0.55%

U.S. Equity Futures Extend Decline Amid Economic Concerns and Geopolitical Tensions

U.S. stock futures continued to fall on Friday, with Nasdaq 100 futures down 0.75% and S&P 500 futures retreating 0.55%, signaling a cautious open for Wall Street. The selloll continued amid mixed economic data, escalating U.S.-Iran tensions, and uncertainty surrounding President Trump’s shifting tariff policies.

The latest economic reports added to investor unease. The Commerce Department revealed that fourth-quarter GDP grew by 1.4%, far below the 2.8% forecast, as weak government spending and exports offset gains in consumer spending. Additionally, the core personal consumption expenditures (PCE) price index—a key Federal Reserve inflation gauge— rose 0.4% in December, exceeding expectations of a 0.3% increase, with the annual rate climbing to 3.0% from 2.8%. These figures raise concerns about inflation persistence and potential Fed rate hikes.

Geopolitical risks also weighed on markets. Asian markets closed mostly lower, with Japan’s Nikkei and Hong Kong’s Hang Seng each falling 1.1%. Meanwhile, President Trump announced plans to raise global tariffs to 15% from 10%, effective immediately, following a Supreme Court ruling that invalidated his prior "reciprocal" tariffs. According to CNBC, investors remain uncertain about the economic impact of these measures and potential retaliatory actions from trade partners.

The selloff follows a volatile week for equities. On Thursday, the Dow, S&P 500, and Nasdaq all closed lower after initially rebounding from earlier losses. The tech-heavy Nasdaq has faced additional pressure from an ongoing selloff in the "Magnificent Seven" stocks, with Nvidia's upcoming earnings report seen as a key indicator for the sector's health.

Looking ahead, investors will closely watch the February Flash Composite PMI (9:45 a.m. ET) and new home sales data (10 a.m. ET) for further clues about economic momentum. As data shows, with geopolitical tensions and inflation risks persisting, markets remain vulnerable to further volatility.

Source: Nasdaq. Source: CNBC. Source: Nasdaq.