(Reuters) – U.S. stock index futures fell on Friday as reports of escalating conflict in the Middle East made investors more risk-averse, while Netflix said its revenue for the current quarter would be lower than expected. As a result, the stock fell in pre-market trading.
Sources said Israel launched an attack on mainland Iran on Friday, in the latest retaliation between the arch-enemies, whose decades-old shadow war has erupted into the open and threatened to drag the region further into conflict. It started.
“While the intent does not appear to be to cause large-scale damage, including to nearby military bases, or to spark an outright interstate war, we remain open to the possibility of that,” said Hasnain Malik, head of equity research at Tellimer. I think it’s extremely low.” Note.
The CBOE Volatility Index, also known as Wall Street’s “fear gauge,” rose 1.83 points to 19.83, its highest level in more than five months.
On the revenue front, Netflix fell 6.3% in pre-market trading after the streaming video pioneer gave disappointing second-quarter guidance.
Shares of other streaming service providers, including Walt Disney and Roku, fell 1.3% and 1.5%, respectively.
As of 5:05 a.m. ET, the Dow e-mini was down 131 points, or 0.34%, the S&P 500 e-mini was down 22.5 points, or 0.45%, and the Nasdaq 100 e-mini was down 124 points. ．Decrease of 5 points (0.71%).
The S&P 500 and Nasdaq closed Thursday’s session lower for the fifth straight session, as economic data and comments from Federal Reserve officials suggested the U.S. central bank is unlikely to cut interest rates in the near future.
Fed policymakers are united in their belief that borrowing costs will remain where they are, likely well into this year, given the slow and bumpy evolution of inflation and the continued strength of the U.S. economy.
Stock markets have been rattled this week as investors readjust their expectations for how much the Fed will cut interest rates this year, with the S&P 500 and blue-chip Dow both down for the third straight week, and the Nasdaq for the fourth straight week. It is expected to decline. Losses if current trends hold.
Money markets are currently pricing in about 40 basis points of central bank interest rate cuts, down from about 150 basis points in early 2024, according to LSEG data.
Most mega-growth stocks also fell, with Apple, Nvidia, Metaplatform and Tesla falling between 0.4% and 1.9%.
Paramount Global shares rose 10.7% after people familiar with the matter told Reuters that Sony Pictures Entertainment and Apollo Global Management were in talks about making a joint bid for the company.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Sherry Jacob Phillips)
