U.S. stock futures were mostly flat on Thursday morning after falling in the regular session and snapping a massive two-day rally.
Dow Jones Industrial Average futures fell 14 points, or 0.05%. S&P 500 futures were little changed and Nasdaq 100 futures rose 0.11%.
The stock struggled to maintain its winning streak on Wednesday, but ultimately fell short. The Dow closed about 42 points lower, or 0.14%, recovering from a session low of nearly 430 points. The S&P 500 and Nasdaq Composite fell 0.20% and 0.25%, respectively.
Rising yields added pressure on stocks on Wednesday. The 10-year US Treasury rate topped 3.7%, up from 3.6% the day before.
“Few are convinced the recent move is more than a bear market rally, with skepticism about durability,” said Mark Hackett, head of investment research at Nationwide. “Confidence remains weak, from CEOs, small businesses, consumers and investors. Universal pessimism is bullish from a contrarian perspective, although the timing of the pendulum swing 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.
ADP data showed the labor market remained strong among private firms in September, when firms added 208,000 jobs. That beat the Dow Jones estimate of 200,000 jobs. On Friday, the Bureau of Labor Statistics’ September employment report will be released, providing the central bank and investors with 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.