Wall Street Selloff: Tech Stocks and Fed Tensions Trigger Market Turbulence

U.S. stock index futures fell as Wall Street faced renewed selloff pressures following hawkish remarks from Federal Reserve officials. Uncertainty around interest rate cuts and lack of economic data during the prolonged government shutdown have fueled market volatility, with technology stocks leading losses and investor sentiment swinging unpredictably.

U.S. stock index futures saw a downturn on Friday, hinting at a renewed selloff wave on Wall Street. This followed hawkish commentary from Federal Reserve officials, casting doubt on the likelihood of an interest rate cut in December.

The major indexes recorded their steepest declines in over a month on Thursday, primarily dragged down by technology stocks. The end of the longest U.S. government shutdown resulted in an economic data drought, complicating the Fed's and traders' projections surrounding labor market vitality and inflation trends.

Despite the government's reopening, skepticism remains regarding the release of key economic indicators like employment and consumer price figures for October. Market sentiment fluctuated notably this week, reflecting investor confusion amidst mixed narratives. Tech stock downturns, particularly in AI, have exacerbated market fears, with Nvidia's upcoming results poised to influence this year's record-high index rallies significantly.

(With inputs from agencies.)