U.S. stock futures fell on Wednesday morning after the S&P 500 posted its best two-day gain in roughly two years.
Dow Jones Industrial Average futures declined by 150 points, or 0.49%. S&P 500 and Nasdaq 100 futures dipped 0.53% and 0.55%, respectively.
During the regular session Tuesday, the Dow jumped about 825 points, or 2.8%. The S&P 500 gained nearly 3.1%, while the Nasdaq Composite advanced 3.3%.
The two straight days of gains came on the back of a pullback in bond yields, with the 10-year Treasury yield falling below 3.6% at one point after topping 4% briefly last week.
Meanwhile, a weakening in the most recent job openings data had some investors considering whether the Federal Reserve will slow the pace of interest rate hikes.
Market participants wondered whether those signs could mean markets have finally priced in a bottom after the sharp declines in the prior quarter.
“I don’t think you have to worry about a recession until the second half of ’23,” Stifel chief equity strategist Barry Bannister said Tuesday on CNBC’s “Closing Bell: Overtime.” “So there is room for a rally as you go into the early part of next year.”
Traders are expecting a raft of economic reports on Wednesday. Data on weekly mortgage applications is expected. September’s ADP private payrolls report is due out at 8:15 a.m. ET. The latest international trade reading is due at 8:30 a.m. ET, while the ISM services index is set to be released at 10 a.m. ET.
2 Min Ago
European stocks retreated slightly on Wednesday as the positive trend seen in global stocks in recent days faded.
The pan-European Stoxx 600 was down 0.4% in early trade. Autos dropped 2% to lead losses while media stocks gained 0.3%.
– Elliot Smith
7 Hours Ago
There’s unlikely to be a sustainable market bottom unless three conditions are met, according to Morgan Stanley.
“We … remind readers that the last few innings of every bear market are very challenging to trade as volatility becomes extreme,” they wrote. “None of the conditions we have been looking for to call an end to this bear market are in place.”
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— Weizhen Tan
9 Hours Ago
Stifel chief equity strategist Barry Bannister said stocks can advance further after this week’s sharp two-day rally.
“I don’t think you have to worry about a recession until the second half of ’23,” Stifel chief equity strategist Barry Bannister said Tuesday on CNBC’s “Closing Bell: Overtime.” “So there is room for a rally as you go into the early part of next year.”
The strategist said there could be a “conditional pause” at the December meeting as the Federal Reserve reviews the impact of its interest rate hiking plan on inflation.
“Inflation leading indicators are all falling, global liquidity has tightened quite a bit. They don’t want to kill the patient to cure the disease,” Bannister said. “And if the data kept going their way, then the pause would last, and if the data don’t go their way, they would hike again and we would go right back down.”
— Sarah Min
10 Hours Ago
September’s ADP private payrolls report is due out Wednesday at 8:15 a.m. ET.
Economists are expecting private payrolls to have grown by 200,000 last month, according to estimates from Dow Jones.
If the report meets those estimates, it would mean an acceleration from the pace of hiring in August, when private payrolls rose by just 132,000 for the month.
— Sarah Min
10 Hours Ago
U.S. stock futures fell slightly on Tuesday night after the S&P 500 posted its best two-day gain in roughly two years.
Dow Jones Industrial Average futures fell by 45 points, or 0.19%. S&P 500 and Nasdaq 100 futures dipped 0.15% and 0.13%, respectively.
— Sarah Min