US stock futures pulled back on Friday, signaling a retreat from all-time highs as European turmoil rattled nerves and Elon Musk’s pay package win put Tesla (TSLA) center stage.
Dow Jones Industrial Average futures (YM=F) sank about 0.7% to lead the declines, while S&P 500 futures (ES=F) shed 0.5%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) were roughly 0.2% lower.
Stocks are losing steam after the benchmark S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) nailed record closes for the fourth day in a row, boosted by strength in techs. A surprise cooling in wholesale price pressures gave heart to investors betting on two interest-rate cuts this year, given the fall is seen as likely to be reflected in the coming PCE inflation reading watched by the Federal Reserve.
Read more: How does the labor market affect inflation?
But the Fed this week dialed down its projected rate cuts from three to one in 2024, keeping the market guessing and leaving stocks vulnerable to shifts in mood. Strength in techs has driven broader gains, setting the S&P 500 and Nasdaq up for weekly wins — for now, at least. But the Dow faces a loss for the week, as questions persist about the breadth of this year’s rally.
Meanwhile, Tesla shares were up around 1% in Friday’s premarket after shareholders re-approved CEO Elon Musk’s $56 billion pay package. Despite opposition from some large investors, 77% of votes were cast in favor, the EV maker said.
Not helping spirits was a slump in European stocks (^STOXX), which were headed for their worst week since October. Investors are concerned about the fallout for markets if the far right makes gains or even wins France’s snap election.
Another dose of worry came from the Bank of Japan’s decision to hold off from giving details of its bond-buying cuts until July, a surprise move interpreted as delaying a rate hike.
In individual movers, Adobe (ADBE) shares jumped 15% after an upbeat AI sales projection from the Photoshop maker.
