Stock Market Today: Dow, S&P 500, Nasdaq Futures Slide as Rate-Cut Hopes Fade

US stock futures tumbled on Friday, extending Wall Street’s sharpest sell-off in more than a month as doubts over a December Federal Reserve rate cut intensified. Weak sentiment around interest-rate expectations weighed heavily on risk assets, especially high-valuation tech stocks.

Dow Jones Industrial Average futures slipped around 0.6%, while S&P 500 futures dropped nearly 1%. Nasdaq 100 futures, reflecting the rout in technology shares, fell about 1.5%.

Tech, Crypto Lead the Declines

The sell-off comes after Thursday’s steep losses across major indices. Technology stocks once again led the downturn, driven by concerns over stretched valuations and cooling optimism around AI-linked gains.

Tesla dropped 4% in premarket trade, falling below the $400 mark after suffering its worst trading day since July. Nvidia shares, which also slumped sharply on Thursday, slid an additional 3% early Friday.

Bitcoin extended its decline, dropping below $96,000 for the first time in more than six months. The cryptocurrency has now fallen over 20% from its October peak as outflows from crypto ETFs accelerate.

Rate-Cut Expectations Fall Below 50%

Market jitters intensified after Federal Reserve officials adopted a more hawkish tone, signalling caution on cutting interest rates too quickly. Traders now price in less than a 50% probability of a quarter-point rate cut in December — a significant shift from the 95% odds seen just a month ago.

Minneapolis Fed President Neel Kashkari added to the uncertainty, saying the resilience of the US economy and continued inflation pressures warranted patience.

Mixed data expectations also cloud the outlook as the government works to recover from a historic six-week shutdown, leaving gaps in labor-market and inflation reporting.

Tariff Cuts on the Table

In an attempt to ease household costs, President Trump is reportedly preparing substantial tariff reductions aimed at lowering grocery prices. Planned trade deals with Latin American countries — including Argentina and Brazil — are expected to reduce the cost of key imports such as bananas and coffee.

Global Markets and Corporate Updates

China Markets:

Fresh data from China added to global market pressures, with retail sales rising just 2.9% in October, their slowest pace this year. Industrial production also posted its weakest growth since January, dragging down US-listed Chinese stocks including Alibaba, JD.com, Baidu, and XPeng.

Corporate Highlights:

• Walmart CEO Doug McMillon announced his retirement, leading to a 2.5% slide in the stock. John Furner, head of operations, will take over.
• Oracle fell over 2% premarket, extending heavy losses amid investor concerns about its aggressive AI-related spending.
• Warner Bros. Discovery rose 3% following reports of acquisition interest from Paramount, Comcast, and Netflix.
• Whirlpool gained 3% after Appaloosa Management disclosed a major stake.
• Applied Materials fell 5% on weaker revenue despite an optimistic first-quarter forecast.

Meanwhile, recessionary pressures continue to build for lower-income households, raising concerns about uneven economic recovery across the US economy.