- December 17, 2021
- Posted by: Bastion team
- Category: World News
Stock futures headed for a lower open Friday morning after a rout in technology stocks during Thursday’s regular trading day, as investors turned away from growth stocks in anticipation of tighter monetary policy next year.
Contracts on the S&P 500 ticked down. A day earlier, the index closed sharply lower, with the tech-heavy information technology and consumer discretionary sectors leading the way to the downside. And the Nasdaq had underperformed to drop 2.5% to give back all of its gains after a rally on Wednesday.
Shares of FedEx (FDX) jumped after the shipping giant raised its full-year earnings forecast, delivered better-than-expected fiscal second-quarter results and authorized a new $5 billion stock buyback program. Rivian (RIVN), meanwhile, saw shares sink following its first quarterly report since its IPO last month. The electric-vehicle maker said in its shareholder letter it expected to be “a few hundred vehicles short” of its prior target of producing 1,200 units by the end of this year.
Investors’ main focus this week has remained fixed on the Federal Reserve’s updated outlook on monetary policy for next year, with the central bank’s projections delivered mid-week suggesting the Fed could hike interest rates three times next year.
The specter of higher rates — and a lower-liquidity environment as the central bank also speeds up the tapering process of its asset purchases — has continued to weigh heavily on longer-duration technology and growth stocks…