Stock futures inch higher after major averages posted worst day since June

Stock futures rose early Tuesday morning after stocks ended their worst day since June and Wall Street’s summer rally faded on growing concerns about interest rate hikes.

Futures tied to the Dow Jones Industrial Average rose 25 points, or 0.08%, while S&P 500 and Nasdaq 100 futures rose slightly by 0.05% and 0.12%, respectively.

Zoom fell in extended trade after lowering its full-year forecast, while Palo Alto Networks rose after posting strong quarterly results.

In regular trading Monday, the Dow fell 643.1[ads1]3 points, or 1.91%, to 33,063.61, while the S&P fell 2.14% to 4,137.99, the worst day for both benchmarks since June 16. The Nasdaq Composite fell 5% for the 382nd day since June 28.

Monday’s sell-off was broad-based, with all 11 S&P 500 sectors closing lower, led by declines in information technology and consumer discretionary stocks. A fall in technology stocks weighed on the tech-heavy Nasdaq.

“The global growth story is in tatters right now,” said Ed Moya, senior market analyst at Oanda. “That’s what’s really weighing on risk appetite right now because you can’t have the US continue to be attractive while the rest of the world is crumbling.”

This sentiment will continue to put pressure on major technology and consumer spending stocks, he said. Moya, echoing other investors, expects another round of hawkish pushback from Fed Chairman Jerome Powell when he speaks Friday at the central bank’s annual Jackson Hole economic symposium.

Earnings season continues Tuesday with results from Macy’s, Nordstrom and Dick’s Sporting Goods. July new home sales will also be reported, along with the August manufacturing PMI and the August Richmond Fed survey.

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