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**Futures Slide In Risk-Off End To Volatile Week**

Futures Slide In Risk-Off End To Volatile Week

US equity futures extended their recent weakness and traded near the week's lows in early Friday trading as investors digested the latest corporate updates. Investors now await PMI data later today for further direction on the path for monetary policy. Contracts on the S&P 500 and the Nasdaq 100 drifted -0.2% lower as of 7:15 a.m. ET, as both indexes were set to end the week in negative territory, the Nasdaq underperforming slightly. Treasury yields edged higher, while the dollar advanced against other major currencies with a measure of its strength set for its first weekly gain in six weeks. Iron ore, gold and oil all decline, as the gains from the latest OPEC+ output cut are now all gone: so will OPEC cut again to reverse the slide in the one asset class that unlike stocks, everyone loves to short as a hedge for the coming recession?

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In premarket trading, Tesla edged higher after the electric-vehicle maker increased prices of its Model S and X vehicles in the United States just two days after cutting prices. Wish soared more than 20% in premarket trading after the company announced a buyback plan that represents 30% of its current market value, data compiled by Bloomberg show..

- Mullen Automotive surges as much as 53% before paring gains to 30%, set to rebound from three days of losses and joining in broader gains across electric vehicle stocks.

- Big Lots shares decline 5.4% after Piper Sandler downgrades the retailer to underweight from neutral, citing weakening demand for home furnishings and mattresses.

- Invitae rises 5% after Cathie Wood, whose Ark Investment funds are among leading holders in the genetic testing company, spoke to CNBC yesterday about holding the stock, which has been trading near a record low in recent weeks.

- Overstock.com drops as much as 3.4% after the online home goods retailer was downgraded to neutral from overweight at Piper Sandler, with the broker citing demand for home furnishings weakening further.

Despite growing recession fears - yesterday's Philadelphia Fed index confirming as much - Federal Reserve Bank of Cleveland President Loretta Mester signaled support for another rate hike to quell inflation while flagging the need to watch recent bank stress that may crimp credit and damp the economy. Her Dallas counterpart Lorie Logan said inflation has been “much too high,” while outlining measures to watch.

“We are in the camp of US recession in the second half, and expect data to weaken going forward,” said Mohit Kumar, a strategist at Jefferies International Ltd.. “Once the last Fed hike is done in May, the market will start to focus on the weak economic data and bad data will become bad news; seasonality starts to turn in May, with May and June poor months for risky-asset performance.”

“Continuation of data disappointment and subsequent recessionary fears weigh on both stock prices and bond yields,” said James Athey, investment director at abdrn investments. “In the end, that’s where the trap for equity bulls lay — whichever way you look, it was hard to justify the lofty prices, EPS forecasts and valuations which have been prevailing.”

US stocks have traded in a very narrow range in April after recovering most losses induced by the regional banks turmoil, as the earnings season kicked off. Still, mixed economic data, sticky inflation and the path of the Federal Reserve’s monetary policy continue to stay at the forefront of worries. Several Fed officials warned inflation was still too high and measures were needed to contain it, including more hikes.

Meanwhile, geopolitical tensions showed no sign of abating, with reports signalling senile figurehead **Joe Biden aims to sign an executive order in the coming weeks that will limit investment in key parts of China’s economy by US businesses.** _“It’s just the next step in a long line of such restrictions that adds to underlying tension between the US and China, raises the cost of trade, and moves the world further away from peak globalization,”_ said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney.

Resilient US earnings have helped equities to hold their year-to-date gains, but US positive surprises are still trending below average, Barclays strategists wrote in a note on Friday. “Okay early first quarter results and rangebound yields maintain the status quo for toppish equities,” Barclays’ Emmanuel Cau said in the note. “But while markets have pared rate cut expectations, history shows a quick Fed pivot from hikes to cuts can only be triggered by much weaker data.”

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