MU Micron Technology Inc

The major U.S. index futures are currently pointing to a lower open on Friday, with stocks likely to move to the downside after ending the previous session little changed.

Concerns about the outlook for interest rates may continue to weigh on Wall Street following the sell-off seen during trading on Wednesday.

The Fed signaled Wednesday that it expects to lower rates less than previously estimated next year amid signs progress toward reducing inflation has slowed.

However, the futures climbed well off their worst levels following the release of a Commerce Department report showing consumer prices in the U.S. crept up by slightly less than expected in November.

The Commerce Department said its personal consumption expenditures (PCE) price index inched up by 0.1 percent in November after rising by 0.2 percent in October. Economists had expected prices to increase by another 0.2 percent.

The annual rate of growth by the PCE price index accelerated to 2.4 percent in November from 2.3 percent in October, slightly slower than 2.5 percent jump economists had expected.

Excluding food and energy prices, the core PCE price index also edged up by 0.1 percent in November after climbing by 0.3 percent in October. Economists had expected core prices to rise by 0.2 percent.

The annual rate of growth by the core PCE price index in November came in at 2.8 percent, unchanged from October, while economists had expected an acceleration to 2.9 percent.

The inflation readings, which are preferred by the Federal Reserve, were included in a report on personal income and spending.

Following the sell-off seen late in Wednesday’s session, stocks showed a notable rebound in early trading on Thursday. Buying interest waned over the course of the trading day, however, and the major averages eventually ended the day roughly flat.

The Dow still managed to snap its ten-day losing streak, inching up 15.37 points or less than a tenth of a percent to 42,342.24, while the Nasdaq slipped 19.92 points or 0.1 percent to 19,372.77 and the S&P 500 edged down 5.08 points or 0.1 percent at 5,867.08.

The initial strength on Wall Street came as some traders looked to pick up stocks at reduced levels following Wednesday’s steep losses, which saw the Dow tumble to its lowest closing level in over a month.

Wednesday’s sell-off on Wall Street came after the Federal Reserve announced its widely expected decision to lower interest rates by a quarter point but forecast fewer than previously estimated rate cuts next year.

However, traders seemed somewhat reluctant to get back into the markets, as a batch of largely upbeat economic data seemingly provided support for the Fed’s cautious approach to further rate cuts.

The Commerce Department released a report showing the pace of U.S. economic growth unexpectedly surged by more than previously estimated in the third quarter.

The report said gross domestic product shot up by 3.1 percent in the third quarter, reflecting an upward revision from the 2.8 percent jump previously reported. Economists had expected the pace of growth to be unrevised.

A separate report released by the Labor Department showed first-time claims for U.S. unemployment benefits pulled back by more than expected in the week ended December 14th.

The Labor Department said initial jobless claims fell to 220,000, a decrease of 22,000 from the previous week’s unrevised level of 242,000. Economists had expected jobless claims to dip to 230,000.

Interest rate-sensitive housing stocks extended Wednesday’s sell-off, with the Philadelphia Housing Sector Index tumbling by 2.6 percent to its lowest closing level in over five months.

The continued weakness among housing stocks came even though the National Association of Realtors released a report showing existing home sales spiked to an eight-month high in November.

Considerable weakness was also visible among interest rate-sensitive commercial real estate stocks, as reflected by the 1.6 percent loss posted by the Dow Jones U.S. Real Estate Index.

Semiconductor stocks also showed another significant another significant move downside, dragging the Philadelphia Semiconductor Index down by 1.6 percent.

Micron (NASDAQ:MU) led the sector lower, plummeting by 16.2 percent after reporting better than expected fiscal first quarter earnings but providing disappointing fiscal second quarter guidance.

Computer hardware, oil producer and steel stocks also saw notable weakness on the day, while airline stocks moved sharply higher.

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