Wall Street futures tumbled Friday morning following the release of disappointing economic data that showed the nation’s economy expanded less than anticipated during the final three months of last year, while December inflation figures came in above projections.
According to the Commerce Department’s latest report, the U.S. economy expanded at an annual rate of 1.4% during the October-December period, a significant slowdown from the robust 4.4% growth recorded in the third quarter. Financial analysts surveyed by Reuters had predicted economic expansion would reach 3% for the fourth quarter.
Meanwhile, inflation data released simultaneously painted a concerning picture for consumers. The Personal Consumption Expenditure index, which serves as the Federal Reserve’s primary tool for measuring inflation, climbed 0.4% from November to December, surpassing economist predictions of a 0.3% monthly increase. The core PCE measure, which strips out volatile food and energy costs, also jumped 0.4% month-over-month, exceeding the anticipated 0.3% rise.
Financial markets reacted negatively to the mixed economic signals. As of 8:34 a.m. Eastern Time, S&P 500 E-mini futures had declined 19.25 points, representing a 0.28% drop. Nasdaq 100 E-mini contracts fell more sharply, losing 96.5 points or 0.39%, while Dow E-mini futures decreased by 115 points, down 0.23%.
