After the major averages prolonged a losing skid during Thursday’s regular session, US stock futures increased on Friday as investors continued to evaluate the prospects for growth and monetary policy. S&P 500 futures increased by roughly 0.26%, while Nasdaq Composite futures increased by 0.42%. Netflix is trading 5.67% higher in the pre-market session on Friday after higher-than-anticipated subscription data. Following the announcement that it added 7.66 million subscribers in the last quarter of 2022, easily exceeding the 4.5 million average projection, Netflix Inc. saw a rise in after-hours trade.
US equities sank for a third day as concerns about the impact of rising interest rates on earnings and economic development persisted. On Thursday during regular trading, the Nasdaq lost 0.96%, marking its second consecutive day of losses, while the Dow and S&P 500 both dropped 0.76%. The industrial, consumer discretionary, and financial sectors all posted poorer final results, making up eight of the 11 S&P sectors.
“Markets began 2023 with healthy gains led by optimism that the Fed may soon begin slowing the pace of its interest-rate rises and by the end of China’s severe pandemic restrictions. But in recent days that upbeat mood has started to fade, with concern that the lagged effects of the Fed’s rate rises are beginning to take their toll,” says Mitul Shah, Head of Research – Institutional Desk, Reliance Securities.
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Asian stock markets jumped on Friday as expectations of a downturn and greater monetary tightening in other major nations were overcome by optimism about the economy brought on by China’s reopening. Investors also took in information revealing that Japan’s annual core inflation rate surged to a new high of 4% in December, while China’s central bank held its benchmark lending rates steady for the fifth consecutive month.
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Investors are still being cautious ahead of the week-long Lunar New Year holidays in China due to the possibility of an unforeseen incident occurring while markets on the mainland are closed. Australian, South Korean, Japanese, Hong Kong, and Chinese mainland stocks all increased.