S&P 500 futures fell early Thursday after a losing Wall Street session driven by hotter-than-expected inflation data. South Korea's Kospi dropped more than 7% dragged by SK Hynix and Samsung Electronics. Producer prices, retail sales and jobless claims are due next.
S&P 500 futures shed 0.31% early Thursday, as traders looked ahead to more earnings reports and economic data. The move followed a session driven by hotter-than-expected inflation data.
Wall Street falls after inflation data
The S&P 500 dropped 1.1% in regular trading, its biggest one-day slide since July 29. The Nasdaq Composite fell 1.9%, its worst day since July 23, when it dropped 2.2%. The Dow was the relative outperformer, falling just 0.1%.
Futures pointed in different directions on Thursday. Nasdaq-100 futures dropped 0.83%. Dow Jones Industrial Average futures added 0.12%, or 63 points.
Concerns are growing that the Federal Reserve could tighten monetary policy more aggressively before year-end, after consumer prices in September rose faster than expected on a year-over-year basis. Jamie Cox of Harris Financial Group said the Fed appears set to repeat its Covid-era mistake in reverse on the energy supply shock.
Kospi plunges as chipmakers slide
In Asia, South Korea's Kospi plunged 7.57% to 5,554.22, dragged by SK Hynix and Samsung Electronics, which fell more than 11% and nearly 10%, respectively. Japan's Nikkei 225 lost 4.9% to 64,425.95, and the CSI 300 fell 1.23% to 4,166.01.
CNBC linked the chip sell-off to concerns over further Fed rate hikes and the financing of artificial intelligence investments. European chipmakers followed in premarket trading, with ASML down 1.52% and Infineon Technologies down 2.32%.
Producer prices and earnings are next
Investors will get the September reading on producer prices at 8:30 a.m. ET, alongside new retail sales figures and weekly jobless claims. Regional banks U.S. Bancorp and PNC are due to report earnings, and Charles Schwab is also scheduled to post results.
Source: CNBC
Trading involves risk.
Risk Disclaimer
