U.S. stock futures fell on Wednesday, putting Wall Street on track to recoup some of its strong gains of the past two sessions.
Dow Jones Industrial Average futures fell 275 points, or 1%. S&P 500 and Nasdaq 100 futures fell 1% and 0.9%, respectively.
The Dow jumped about 825 points, or 2.8%, on Tuesday. The S&P 500 gained nearly 3.1%, while the Nasdaq Composite advanced 3.3%. Those gains, stemming from falling bond yields, led to the S&P 500’s strongest two-day stretch since 2020.
Meanwhile, a weakening of the latest job postings data had some investors wondering whether the Federal Reserve will slow the pace of interest rate hikes.
Market participants wondered if these signs could mean markets have finally bottomed out after the previous quarter’s sharp declines.
“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’s room for a rally as you go into early next year.”
Traders await a series of economic reports on Wednesday.
Data on weekly mortgage applications are expected. The September ADP private payrolls report will be released at 8:15 am ET. The latest international trade reading will be at 8:30 am ET, while the ISM services index will be released at 10:00 am ET.