S&P 500 Futures, Europe Stocks Fall; Apple Gains: Markets Wrap

 Futures on the S&P 500 extended a drop, while those on the Nasdaq 100 gave up gains of as much as 1.4%. Apple rose in premarket trading. Losses in tech and auto shares dragged on European benchmarks, outweighing robust results from luxury firm LVMH SE and retailer Hennes & Mauritz AB.

A dollar gauge ticked up, while Treasuries slipped. A gauge of Asia-Pacific shares rose for the first day in six as gains in Japan offset declines in China.

Global markets have been whiplashed this week by volatility as the Federal Reserve signaled aggressive tightening, while geopolitical tensions and an uneven earnings season added to investor concerns. Also sapping sentiment on Friday, Germany’s economy shrank more than expected.

As investors brace for rising rates, rotating out of frothier equities, value stocks are outperforming.

Money markets are now pricing in nearly five Fed hikes this year after a hawkish stance from Chair Jerome Powell. That’s up from three expected as recently as December.

“Tighter liquidity and weaker growth mean higher volatility,” Barclays Plc strategists led by Emmanuel Cau wrote in a note. The “current growth scare looks like a classic mid-cycle phase to us, while a lot of hawkishness is priced in.”