U.S. stock futures fell on Wednesday, putting Wall Street on track to give back some of the strong gains of the past two sessions.
Dow Jones Industrial Average futures fell 278 points, or 1[ads1]%. Futures on the S&P 500 and Nasdaq 100 fell by 1% and 0.9% respectively.
Treasury yields rose on Wednesday, weighing on stocks. The 10-year yield traded 7 basis points higher at 3.697% after briefly dipping below 3.6% in the previous session.
Payroll services firm ADP released its jobs report, which showed the addition of 208,000 jobs in September, better than expected by Dow Jones estimates. Traders are still looking ahead to Friday’s release of the non-farm payrolls report.
The Dow on Tuesday jumped about 825 points, or 2.8%. The S&P 500 rose nearly 3.1%, while the Nasdaq Composite rose 3.3%. Those gains, which come on the back of falling bond yields, led to the strongest two-day stretch for the S&P 500 since 2020.
Meanwhile, a weakening in recent job vacancies prompted some investors to consider whether the Federal Reserve will slow the pace of rate hikes.
Market participants wondered if these signs could mean markets have finally priced in a bottom after the sharp declines of the previous quarter.
“I don’t think you have to worry about a recession until the second half of ’23,” Stifel equity strategist Barry Bannister said Tuesday on CNBC’s “Closing Bell: Overtime.” “So there is room for a rally as you go into the beginning of next year.”