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US STOCKS-Futures edge lower after Wall Street's two-day rally

Credit: REUTERS/BRENDAN MCDERMID

U.S. stock index futures edged lower on Friday, led by banking and technology shares following a sharp rally in the past two days after the Federal Reserve kept its policy stance largely in line with market expectations.

By Devik Jain

Sept 24 (Reuters) - U.S. stock index futures edged lower on Friday, led by banking and technology shares following a sharp rally in the past two days after the Federal Reserve kept its policy stance largely in line with market expectations.

Big banks including JPMorgan JPM.N, Citigroup C.N, Morgan Stanley MS.N and Bank of America Corp BAC.N slipped about 0.5%, while oil majors Exxon Mobil XOM.N and Chevron Corp CVX.N were down 0.4% and 0.3%, respectively, in premarket trading.

The banking sub index .SPXBK and the S&P energy sector .SPNY have gained nearly 2.5% and 3.8% so far this week.

Fears about a sooner-than-expected tapering amid signs of stalling U.S. economic growth and concerns over a spillover from China Evergrande's default have rattled investors in September, putting the benchmark S&P 500 index .SPX on course to snap a seven-month winning streak.

On Wednesday, the Fed signaled it would reduce its monthly bond purchases as soon as November and that interest rates could rise quicker than expected. Still, Wall Street's main indexes rallied in the past two session and are set for small weekly gains.

At 6:25 a.m. ET, Dow e-minis 1YMcv1 were down 65 points, or 0.19%, S&P 500 e-minis EScv1 were down 12.5 points, or 0.28%, and Nasdaq 100 e-minis NQcv1 were down 64.5 points, or 0.42%.

Mega-cap growth names Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O, Facebook Inc FB.O and Apple Inc AAPL.O fell between 0.5% and 0.6%.

Nike Inc NKE.N shed 4.6% after the sportswear maker cut its fiscal 2022 sales expectations and warned of delays during the holiday shopping season.

Shares of cryptocurrency-related firms Coinbase Global COIN.O, MicroStrategy Inc MSTR.O, Riot Blockchain RIOT.O and Marathon Patent Group MARA.O slid between 3% and 6.1% after China's central bank vowed to crack down on cryptocurrency trading.

(Reporting by Devik Jain in Bengaluru; Editing by Maju Samuel)

((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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