Stock futures rose on Thursday after the two-day market rally ended
U.S. stock futures were higher on Thursday morning after falling in the regular trading session and breaking a massive two-day rally.
Dow Jones Industrial Average futures rose 118 points, or 0.39%. S&P 500 and Nasdaq 100 futures rose 0.43% and 0.55% respectively.
Stocks struggled to hold on to their winning streak on Wednesday, but ultimately fell short. The Dow closed about 42 points lower, or 0.14%, rebounding from session lows of nearly 430 points. The S&P 500 and Nasdaq Composite fell 0.20% and 0.25%, respectively.
Rising interest rates put pressure on the shares on Wednesday. The yield on the 10-year US Treasury peaked at 3.7%, up from 3.6% a day earlier.
“Few are convinced the recent move is more than a bear market rally, with skepticism about its durability,” said Mark Hackett, head of investment research at Nationwide. “Confidence remains weak, ranging from CEOs, small businesses, consumers and investors. Universal pessimism is bullish from an opposite perspective, although the timing of the swing of the pendulum is difficult to predict.”
Investors continue to monitor economic data to see if inflation is cooling, or if the Federal Reserve’s rate hikes are pushing the US closer to a recession.
Data from ADP showed that the labor market remained strong among private companies in September, when companies added 208,000 jobs. That beat the Dow Jones estimate of 200,000 jobs. On Friday, the September jobs report from the Bureau of Labor Statistics will be released, giving the central bank and investors another piece of data.
Some companies also report earnings. On Thursday, Constellation Brands will announce its results before the opening bell, and Levi Strauss will report after the market closes.
