*
Futures down: Dow 0.55%, S&P 0.76%, Nasdaq 0.97%
Feb 17 (Reuters) - Wall Street stock index futures fell on Friday on fears that accelerating inflation in the face of a sturdy U.S. economy could prompt the Federal Reserve to err on the side of caution by keeping monetary policy restrictive through the year. Economic data over the week signaled that while inflation rose in January, a tight job market and resilience in consumer spending could offer more room for the Fed to raise borrowing costs. Goldman Sachs said it was expecting the Fed to raise rates three more times this year and by a quarter of a percentage point each, while money markets are pricing in a terminal rate of 5.3% by July. All three main indexes clocked their worst annual losses in 2022 since the 2008 financial crisis, dented by the Fed's fastest monetary tightening in four decades.
In January, hopes that the central bank might be nearing the
end of its rate-hiking cycle sparked a renewed interest in
beaten-down growth stocks.
However, halfway into February, the indexes have barely been
able to match the optimism seen in January, with the blue-chip
Dow eyeing a 1% loss, as markets price in the Fed to stay
hawkish year-long.
At 6:47 a.m. ET, Dow e-minis were down 186 points,
or 0.55%, S&P 500 e-minis were down 31 points, or 0.76%,
and Nasdaq 100 e-minis were down 120.5 points, or 0.97%.
Traders will parse commentary by central bank officials
including Richmond Fed President Thomas Barkin and Governor
Michelle Bowman on Friday to assess the Fed's monetary policy
tone looking ahead.
Moderna Inc fell 6.3% in premarket trading after
the drugmaker said its experimental messenger RNA-based
influenza vaccine failed to show it was at least as effective as
an approved vaccine versus less prevalent influenza B.
Manchester United rose 4.4% after hitting a record
close in the previous session. The Telegraph reported on
Thursday that Saudi Arabia has submitted a bid for the British
soccer club ahead of Friday's deadline.
DoorDash Inc climbed 6.2% after the food delivery
company said it would buy back $750 million worth of stock and
projected a key profit measure above Wall Street estimates.
(Reporting by Johann M Cherian in Bengaluru; Editing by Alden
Bentley and Anil D'Silva)
