U.S. stock futures were lower on Tuesday night as investors looked for a solid rally.
Dow Jones Industrial Average futures fell 93 points, or 0.29%. S&P 500 futures fell 0.18% while Nasdaq 100 futures fell 0.32%.
The futures move comes as the recent stock market sell-off appears to have halted. Above TuesdayThe Dow was up 431 points, or 1.3%, while the S&P 500 was up 2% and the Nasdaq Composite was up nearly 2.8%.
The Dow has fallen for seven straight weeks, but stocks have been steady for the last three trading sessions.
Last week, the S&P 500 fell to the brink of a bear market – or 20% below its record high – but the index is now up 4% since Thursday’s close.
Stocks and other risk assets have been pressured by inflation and the Federal Reserve’s attempt to cushion price gains through interest rate hikes, which has led to fears of a potential recession. hidden. Fed Chairman Jerome Powell said at a Wall Street Journal meeting on Tuesday that “there won’t be any hesitation“about raising rates until inflation is brought under control.
However, some recent economic data, including the jobs report and retail data from April, still shows that the US economy is growing.
“There is a big difference between a correction in the stock market and a full bear market,” said Matt Stucky, a senior portfolio manager at Northwestern Mutual Wealth Management. “The difference is that bear markets are almost always associated with some sort of recessionary macroeconomic environment, or at least one that is inevitable in the forecast horizon for the next six to 12 months. For us, sitting here today, we just don’t see it.”
A busy week in retail earnings continues Wednesday, with Target and Lowe reporting results before the opening bell.
Investors will also get an updated view of the housing market, with housing start data and building permits for April set to expire on Friday morning.