After Chinese market volatility killed the momentum of a rally spurred by optimism about U.S. economic growth, U.S. stock futures and European shares fell Friday, the Wall Street Journal reported. Performance in the Asian market pointed to a 123-point opening loss for the Dow Jones Industrial Average and a 0.8 percent drop for the S&P 500. These changes in futures aren’t always reflected accurately after the opening bell on Wall Street.
However, after a week of sharp swings in global stocks, investors’ uncertainty is more apparent, Guy Foster, research director at the wealth managing firm Brewin Dolphin, told the Journal. “There are a lot of irrational moves going on in markets as a result of investors not really knowing how to read what’s happening,” he said.
China’s Shanghai Composite Index ended 4.8 percent higher Friday, which some analysts attributed to the government’s intervention. Leaders in Beijing cut interest rates, among other measures, following Chinese stocks’ worst single-day percentage loss in eight years Monday.