Stock futures fall after Wall Street closed out August with losses

U.S. stock futures fell Thursday morning after the main August averages closed with losses and investors considered the Federal Reserve’s fight against inflation.

Dow Jones Industrial Average futures fell 140 points, or 0.44%. S&P 500 and Nasdaq 100 futures fell 0.71% and 1.19% respectively.

These moves follow four straight days of losses in the major averages. On the last day of August, the Dow Jones Industrial Average slipped almost 0.9%. The S&P 500 lost about 0.8% and the Nasdaq Composite fell about 0.6%.

The Dow Jones closed the month down about 4.1%, while the S&P and Nasdaq posted losses of 4.2% and 4.6%, respectively.

Investors are wondering if equities will challenge June lows again in September, a historically poor month for markets, after weighing recent hawkish comments from Fed officials that show no signs of easing rate hikes. ‘interest.

On Wednesday, Cleveland Federal Reserve Chair Loretta Mester said she expects interest rates to rise above 4% before the central bank began to withdraw. The current federal funds rate is 2.25% to 2.50.

“If we retest the lows, I think it will happen in September,” SoFi’s Liz Young said Wednesday on CNBC’s “Closing Bell: Overtime.”

However, she added, “I think to do that would require something to get significantly worse than it was on June 16,” when stocks bottomed out, like earnings revisions. which are worse than investors expect.

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