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- It's the final trading day of the week (and month), but equities are not wearing their party hats. Nasdaq futures led the declines overnight, falling 1.2% after Q2 revenues at Amazon fell short, while the e-commerce giant gave a weaker outlook. Pinterest is also down 20% premarket after losing monthly users during the three months ended June 30 (and don't forget the disappointing IPO from Robinhood).
- Rally growing fragile? GDP data on Thursday suggested the pace of growth may be slowing. The U.S. economy expanded at a 6.5% annualized rate in Q2, but that was discouraging given expectations for 8.4% growth. Some are looking further into the data, seeing a larger-than-expected drag from the global supply chain shortages, which could mean an economic boom when the issues are finally ironed out.
- "There are so many crosscurrents going on at the moment influencing markets," said Sebastian Mackay, a multi-asset fund manager at Invesco. "We've entered a more volatile period for markets, but markets will continue to move higher because we're still seeing economic growth."
- On the economic calendar: Inflation-focused investors will also get some clarity today. The Fed's preferred inflation gauge, the personal consumption expenditures price index, will be published this morning at 8:30 a.m. ET. In the 12 months through June, the so-called PCE price index likely shot up 4.1%, with the core figure not far behind at 3.7% Y/Y.
- See also: Amazon.com, DiDi Global, Pinterest among premarket losers.