U.S. Stock Futures Stabilize After Sharp Selloff

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Our major stories today: U.S. stock futures stabilize after sharp selloff (0:28). Will Amazon strike during busy holiday season? (2:15) Micron shares slump 16% (3:45).

U.S. stock futures stabilized on Thursday after a sharp selloff on Wall Street the previous day, triggered by the Federal Reserve’s revised outlook for interest rates in 2025: Dow +0.10%; S&P 500 -0.03%; Nasdaq -0.17%.

Bitcoin (BTC-USD) fell below the $100,000 mark on Thursday, retreating sharply from recent all-time highs following signals from the US Federal Reserve of fewer interest rate cuts in 2025.

Stock futures ticked up slightly, rebounding from the previous session’s losses, as the Federal Reserve forecasted persistent inflation and limited rate cuts in 2025, as discussed in-depth on yesterday’s Wall Street Lunch. The outlook followed a widely expected quarter-point rate reduction by the central bank.

In the bond market, the U.S. 10-year Treasury yield is up 2 basis points to 4.52%.

Central banks in Europe will decide on monetary policy today, including the Bank of England, which is expected to hold borrowing costs steady, balancing persistent inflation concerns against indications of slowing growth.

Asia-Pacific markets traded in red on Thursday, tracking the fall sell-off on Wall Street overnight. Investors assessed the Bank of Japan’s decision to keep its policy rate unchanged at 0.25% for the third straight meeting.

Meanwhile, caution mounted ahead of Friday’s decision on key lending rates from the Chinese central bank.

The Japanese yen fell past 155 per dollar on Thursday, reaching a one-month low, after the Bank of Japan left its policy rate unchanged at 0.25%, as widely expected.

Investors are now focused on BOJ Governor Kazuo Ueda’s post-meeting press conference for insights into the timing of future rate hikes.

The Teamsters—a labor union group—said that Amazon (NASDAQ:AMZN) will face its largest strike in U.S., starting Thursday, amidst a busy holiday season.

The workers are demanding better wages and working conditions amid claims that the retailer failed to negotiate effectively with the union. Workers at the facility said a union contract should include minimum pay of $30 per hour and better safety protections.

“If your package is delayed during the holidays, you can blame Amazon’s insatiable greed. We gave Amazon a clear deadline to come to the table and do right by our members. They ignored it,” said Teamsters General President Sean M. O’Brien.

The Teamsters said that the strike will impact several major cities, including New York City, Atlanta, San Francisco, and Skokie, Illinois. Workers from multiple facilities will join picket lines.

An Amazon spokesperson told ABC News, however, that “For more than a year now, the Teamsters have continued to intentionally mislead the public claiming that they represent ‘thousands of Amazon employees and drivers.’ They don’t, and this is another attempt to push a false narrative,” adding that the Teamsters have illegally coerced workers to join the union.

The spokesperson added that the company has increased the minimum starting wage by 20% for workers in fulfillment centers and for transportation, and in September increased the average base wage to $22 per hour.

The retailer has garnered a 47% share price gain this year, and its stock price is marginally higher, up 0.39%, to $221.38 per share during after-hours trading on Wednesday.

Micron Technology (NASDAQ:MU) shares slumped 16% despite surpassing FQ1 expectations, as its FQ2 guidance disappointed investors.

The company projects adjusted earnings of $1.33–$1.53 per share, falling short of the $1.93 consensus, and revenue of $7.7B–$8.1B, with the midpoint trailing the $8.99B estimate. Adjusted gross margin for the quarter is expected to fall between 37.5% and 39.5%, below the consensus of 41.3%.

CEO Sanjay Mehrotra remained optimistic, stating, “While consumer-oriented markets are weaker in the near term, we expect growth to resume in the second half of our fiscal year. We are gaining share in high-margin, strategic market segments and are well-positioned to capitalize on AI-driven growth, creating significant value for stakeholders.”

Western Digital (WDC) and Seagate (STX), which often trade in tandem with Micron, fell following the results.

Seeking Alpha analyst Kumquat Research said the company was dealt a “significant blow” as evidenced by its Q2 outlook and Q1 results, due in part to slowing output from the enterprise.

The Biden administration has granted California permission to ban the sale of new gas-powered vehicles by 2035, enacting a major climate policy before the end of its term in January that will likely be revoked by president-elect Donald Trump.

On the economic calendar, look for Initial Jobless Claims at 8:30 AM. The number of individuals filing for unemployment benefits in the U.S. is expected to fall to 232K from 242K.

Editor’s Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.