Stock futures fall slightly after 400-point rally in Dow
Stock futures fell on Wednesday night after the major averages snapped a two-day slide, helped by robust earnings and stronger economic reports for June and July that led investors to look past the possibility of a recession.
Futures tied to the Dow Jones Industrial Average fell 23 points or 0.07%. S&P 500 futures fell 0.1% and Nasdaq 100 futures lost 0.2%.
In normal hourly trading, all three major averages ended the day higher. The Dow rose more than 400 points, while the S&P 500 hit its highest level since June. The tech-heavy Nasdaq Composite jumped around 2.5%.
Investors were given the go-ahead to jump back into beaten-down tech names after a surprise rebound in services PMI in July and comments from St. Louis Federal Reserve President James Bullard. Bullard said he does not believe the United States is in a recession, citing job gains and low unemployment.
“US-China tensions remain high and the Fed continues to talk tough on inflation, but earnings were enough to catalyze the next leg of the rally,”[ads1]; according to Barclays. “A wave of quarterly technical reports came in better than expected, and [technology, media and entertainment, and telecommunications] the complex led the S&P 500 to a new QTD high.
Investors will get another earnings call on Thursday. Eli Lilly, Kellogg, Alibaba and ConocoPhillips are among those to report quarterly results before the bell.
In economic data, investors look forward to weekly jobless claims in the morning. Federal Reserve Bank of Cleveland President Loretta Mester speaks at the Economic Club of Pittsburgh.
