By Katy Barnato
A looming government shutdown, plus the prospect of higher-for-longer rates, have put investors on the defensive.
Stock futures are falling, and many large tech stocks are sinking premarket, as investors consider the possibility of a government shutdown this weekend. President-elect Donald Trump has torpedoed a bipartisan deal, insisting Republican lawmakers pass a narrower bill that meets his demands.
Trump also threatened the European Union with tariffs unless the bloc bought large amounts of U.S. oil and gas to make up for what he called a "tremendous deficit." European stocks traded lower.
The Federal Reserve's preferred inflation gauge is due this morning. Economists forecast the personal-consumption expenditures index rose 0.2% in November on the month, matching October's rate.
Markets were jolted earlier this week after the Fed penciled in just two rate cuts for 2025. Officials also said they expect inflation to be stickier than previously forecast.
In recent trading:
--Futures linked to major U.S. indexes fell, with contracts tied to the tech-heavy Nasdaq-100 down more than 1%.
--In individual stock news, FedEx rallied premarket after the delivery company said it would spin off its freight-trucking division. Nike shares retreated after the company posted another quarterly sales decline and cut its revenue outlook.
--Benchmark Treasury yields edged lower, after climbing for two days to settle at 4.569% Thursday.
--Bitcoin prices dropped below $95,000, weighing on stocks such as Coinbase and MicroStrategy. Earlier this week, the cryptocurrency reached a record high above $108,000.
--Europe's benchmark Stoxx 600 fell more than 1%. Asian indexes mostly posted smaller losses.
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(END) Dow Jones Newswires
December 20, 2024 06:11 ET (11:11 GMT)
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