Wall Street futures slumped on Monday, led by rate-sensitive technology and growth firms, as investors fretted that another major interest rate rise by the Federal Reserve might send the US economy into recession.
On Friday, the S&P 500 and Nasdaq saw their worst weekly percentage drops since June. Fed funds futures indicate a 21% possibility of a 100 basis point hike this week. The CBOE volatility index, popularly known as Wall Street’s fear barometer, increased to 27.90 points, closing in on a two-month high.
Goldman Sachs lowered its projection for 2023 U.S. GDP late Friday, citing a more aggressive Fed, which it believes would push the unemployment rate higher than originally expected.