US STOCKS-Futures slide in gloomy start to second-half

Franchise

01/07/2022 13:19

(For a Reuters live blog on U.S., UK and European stock
markets, click  LIVE/  or type LIVE/ in a news window.)
    * Futures down: Dow 0.39%, S&P 0.37%, Nasdaq 0.39% 

    July 1 (Reuters) - U.S. stock index futures fell at the
start of the second-half on Friday on worries over the hit to
economic growth from the aggressive steps by policymakers
determined to stamp out raging inflation.
    As the era of cheap money draws to a close and a cycle of
higher interest rates sets in, investors for much of the year
have been selling equities, pushing the benchmark S&P 500 to
close out its worst first six months since 1970.
    Federal Reserve policymakers have been making a case for a
second 75-basis points interest rate hike in July despite sign
of slowing economic growth.
    Investors have been fretting over the fallout of such a
policy on earnings of companies already facing weak demand due
to rising prices. 
    Latest data showed manufacturing activity stalled in Asia
and production fell in Europe as higher prices and a darker
economic outlook left consumers wary of making purchases.
 urn:newsml:reuters.com:*:nL1N2YI0E6
    The Institute for Supply Management's survey, due at 10:00
a.m. ET, is expected to show U.S. factory activity eased further
in June.  
    With the earnings season just weeks away, investors will now
listen closely to forecast issued by companies to gauge the
extent of impact of inflation as the year progresses.
    Markets saw a turbulent first half of the year as fears
about aggressive interest rate hikes, geopolitical uncertainty,
prolonged supply-chain snarls and COVID-19 lockdowns in China
weighed on sentiment.
    In the previous session, all three major indexes posted
their second straight quarterly declines, with the Dow  .DJI 
suffering its biggest first-half percentage plunge since 1962
and the tech-heavy Nasdaq  .IXIC  recording its worst-ever first
six months.
    At 07:35 a.m. ET, Dow e-minis  1YMcv1  were down 121 points,
or 0.39%, S&P 500 e-minis  EScv1  were down 14 points, or 0.37%,
and Nasdaq 100 e-minis  NQcv1  were down 44.5 points, or 0.39%.
    Micron Technology Inc  MU.O  dropped 4.5% in premarket
trading as the memory-chip firm predicted current-quarter
revenue below market expectations, triggering concern the chip
industry was turning toward a down cycle.  urn:newsml:reuters.com:*:nL4N2YH3MA
    Facebook-owner Meta Platforms Inc  META.O  slipped 0.5%. The
company has cut plans to hire engineers by at least 30% this
year, CEO Mark Zuckerberg told employees, as he warned them to
brace for a deep economic downturn.  urn:newsml:reuters.com:*:nL1N2YH27A
     Kohl's Corp  KSS.N  tumbled 15.7% as the department store
chain called off its sale to Vitamin Shoppe-owner Franchise
Group  FRG.O , blaming a downturn in market conditions.
 urn:newsml:reuters.com:*:nL4N2YI0RF

 (Reporting by Amruta Khandekar in Bengaluru; Editing by Arun
Koyyur)
 ((Amruta.Khandekar@thomsonreuters.com;))