Investing.com – U.S. stock futures fell in after-hours trading on Thursday, extending losses as concerns over high interest rates and slowing economic growth sparked a two-day rout on Wall Street, with the focus now on key PCE data for more signals by inflation. .
Investors were also on edge over possible political turmoil in the US after a New York court found former President Donald Trump guilty in a money scandal. Trump will be sentenced on July 11 and faces prison time.
A combination of weak earnings and profit-taking led to sharp losses on Wall Street over the past two sessions, while growing doubts about the artificial intelligence industry also weighed on shares of heavyweight technology companies.
It comes amid growing doubts about any interest rate cuts by the Federal Reserve, especially after policymakers warned that persistent inflation would prevent the central bank from easing policy this year.
fell 0.2% to 5,242.75 and was down 0.3% at 18.59.25 by 7:52 pm ET (232 GMT). fell 0.2% to 38,174.0 points.
PCE data expected to boost inflation and rate signals
Investors were now focused solely on the upcoming data, due out on Friday.
These measures are the Federal Reserve’s preferred inflation indicator and will likely be factored into the central bank’s interest rate outlook.
Friday’s data is expected to show inflation fell slightly in April. But the reading is also expected to remain well above the Fed’s 2% annual target range, giving the central bank little reason to begin cutting rates.
Wall Street spooked by fluctuating interest rates and weak GDP
Concerns about high and long-term interest rates led Wall Street to record two days of sharp losses this week.
The end-of-month sell-off also came under pressure, while the end of the first-quarter earnings season brought plenty of disappointment.
Additionally, data released Thursday showed the U.S. economy grew less than initially expected in the first quarter, raising concerns about a stagflationary scenario in which growth remains slow but inflation remains high.
The index fell 0.6% to 5,235.48 on Thursday, down from 1.1% at 16,737.08 on Thursday. It fell 0.9% to 38,111.48 points.
Dell falls due to weak earnings, Zscaler grows
Among the biggest after-hours movers, Dell Technologies Inc (NYSE:) fell nearly 18% after its first-quarter earnings disappointed as demand from the artificial intelligence industry weighed only slightly on overall sales. .
Clothing retail Nordstrom Inc. (NYSE:) fell 7% on disappointing quarterly earnings, while its peer GPS rose 20% on better-than-expected earnings and an improved full-year outlook.
Zscaler Inc. (NASDAQ:) rose 13% after the cloud security company posted strong quarterly earnings and also raised its guidance.