US stock markets are set to fall sharply at the opening bell amid fears that higher interest rates in the US will trigger an economic slowdown.
Amazon slumped 8% in premarket trading after reporting slowing online sales growth in the second quarter and noting that cautious consumers are seeking out cheaper options for purchases.
Apple slipped 0.8% following another sales drop in China, while other megacap stocks such as Microsoft, Tesla, and Alphabet each fell more than 1%.
Wall Street’s “fear gauge” breached the long-term average level of 20 points for the first time since mid-April.
All three major indexes kicked off August with steep declines on Thursday after a round of economic data fueled fears of an economic slowdown, following the US Federal Reserve’s decision to maintain interest rates at 23-year highs this week.
The benchmark S&P 500, the tech-heavy Nasdaq, and the blue-chip Dow are on track to log weekly losses, despite the Fed hinting at a possible interest rate cut in September.
Investors will closely examine the US nonfarm payrolls report before markets open for further signs of a slowing jobs market. The data is expected to show an increase of 175,000 jobs in July, following a gain of 206,000 jobs in June.
In premarket trading, the Dow Jones Industrial Average was down 0.9%, the S&P 500 had fallen 1.3%, and the Nasdaq 100 was down nearly 2%.
