SPX: S&P 500 Tumbles 0.2% in Fourth Losing Session on Clouded Rate-Cut Prospects

Benchmark index is struggling to find its feet in a maze of economic and geopolitical uncertainties.

Key Points:

• S&P 500 closes 4th day in red.
• Stock futures underwater by 1%.
• Earnings season picks up pace.
• The S&P 500 fell 0.2% Thursday to its fourth straight losing session. Futures were deep in red Friday as the benchmark index was struggling to find its feet in a maze of economic and geopolitical uncertainty. Interest-rate cut prospects are fading into the distance with inflation pressures rearing back up and scaring off money managers. Outside the US, tensions between Israel and Iran are sending tremors to global dealmaking.
• Israeli missile strikes on Iran shook up the scene overnight. Israel launched a retaliatory strike against Iran, threatening to expand the Gaza conflict to another border. Markets retreated and moved into safe-haven assets — US stock futures fell sharply with futures contracts on the S&P 500 showing a decline of 1% ahead of today’s open. Dow futures and Nasdaq futures were also underwater.
• Adding to market gyrations is the unfurling earnings season. Bank stocks are faring mostly fine after JPMorgan JPM and Goldman Sachs GS reported mixed bags of financial data. Streaming giant Netflix NFLX posted a surprise 54% first-quarter profit but the shares dipped 5% after Netflix said it won’t be reporting subscriber growth from next year.