Futures on Friday morning pointed to further declines for Wall Street as U.S. stocks near the end of a turbulent trading week.
As of 5:35 a.m. ET Friday, Dow Jones Industrial Average pointed to an implied drop of 700 points at Friday’s open. S&P 500 futures and Nasdaq-100 futures also indicated steep losses for the two indexes at the open on Friday.
Meanwhile, the yield on the benchmark 10-year Treasury continued to head lower after tumbling below 0.8%. It last traded at a historic low of 0.754%. The 10-year yield briefly hit an all-time low of 0.6947%
Treasury yields saw sharp declines this week, continuing to touch new record lows after the Federal Reserve announced an unexpected 50 basis points cut from its benchmark interest rate. It was the central bank’s first such emergency move since the financial crisis more than a decade ago.
“Bond King” and DoubleLine Capital CEO Jeffrey Gundlach told CNBC on Thursday that he believes the Fed panicked in cutting rates earlier this week.
“If we look at history, once the Fed does a panic, intermeeting rate cut, particularly when it’s 50 basis points … they typically cut pretty quickly again,” Gundlach said. “I’m in the camp that the Fed is going to cut rates again, perhaps even in two weeks” during its regularly scheduled meeting.
The moves came amid a wild trading week on Wall Street which has seen stocks make big moves in both directions. The 30-stock Dow swung 1,000 points or higher twice within three days earlier this week.