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US futures, European stocks slide on economic concerns

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US stock futures fell and European stocks opened lower as concerns that high inflation is hurting corporate performance overshadowed bargain-hunting in run-down stocks.

Futures on the S&P 500 index slipped 0.4 percent after the stock benchmark posted its biggest one-day decline since June 2020 on Wednesday.

Nasdaq 100 contracts fell 0.5 percent.

The Stoxx 600 fell more than 1 percent as Europe’s tech stocks joined a global sell-off.

Oil recovered after a two-day decline. The dollar was stable while Treasuries posted modest gains.

Bets that solid earnings could help investors weather this year’s turmoil were called into question after US consumer titans signaled the increasing impact of high inflation on margins and consumer spending.

Meanwhile, Federal Reserve officials reiterated tighter monetary policy is imminent and investors worried about stagflation risks.

“We’re pricing in a growth scare,” Lori Calvasina, head of US equity strategy at RBC Capital Markets, told Bloomberg TV.

“There is a lot of uncertainty in this market right now about whether or not this recession will pull through or whether it will be another near-death experience.”

Retailer and consumer discretionary stocks saw some of the biggest losses in Asia and Europe after US investors questioned the high valuations of companies like Target amid rising interest rates.

In China, Tencent tumbled 6.6 after warning it would take time for Beijing to deliver on promises to shore up China’s tech sector.

Cisco Systems slipped in extended US trade on disappointing sales outlook.

https://www.independent.ie/business/world/us-futures-europe-stocks-slide-on-economy-concern-41665545.html US futures, European stocks slide on economic concerns

Fry Electronics Team

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