Stock futures were lower on Wednesday evening after the major averages fell in two days, helped by robust earnings and stronger economic reports in June and July that led investors to look beyond the possibility of a recession
Futures linked to the Dow Jones Industrial Average fell 23 points, or 0.07%. S&P 500 futures fell 0.1% and Nasdaq 100 futures fell 0.2%.
In regular trading hours, all three major averages ended the day higher. The Dow advanced more than 400 points, while the S&P 500 hit its highest level since June. The tech Nasdaq Composite rose about 2.5%.
Investors were given the green light to return to battered tech names after a surprise rebound in July’s services PMI and comments from the chairman of the Federal Reserve in St. Louis, James Bullard. Bullard said he doesn’t think the U.S. is in a recession, citing job gains and low unemployment.
“Tensions between the US and China remain high and the Fed continues to talk tough on inflation, but the gains were enough to catalyze the next stage of the rally,” according to Barclays. “A wave of technology quarters came in better than expected, and the [technology, media and entertainment, and telecommunications] complex took the S&P 500 to a new QTD high.”
Investors will get another batch of earnings on Thursday. Eli Lilly, Kellogg, Alibaba and ConocoPhillips are among those scheduled to report quarterly results before the bell.
In economic data, investors look forward to weekly jobless claims in the morning. Cleveland Federal Reserve Bank President Loretta Mester speaks at the Economic Club of Pittsburgh.