Stock futures inched higher after key averages, worst day since June

Stock futures rose on Tuesday as the market tried to bounce back from its worst run since June.

Futures linked to the Dow Jones industrial average added 40 points, or 0.1%, while S&P 500 and Nasdaq 100 futures also added 0.1%.

Palo Alto Networks rose in the premarket on the back of strong quarterly results, while Zoom Video shares fell after the video conferencing company cut its full-year forecast.

Wall Street is coming off a bearish session, with a summer rally continuing to fade amid rising rate hike concerns.

The Dow fell more than 600 points on Monday, while the S&P 500 and Nasdaq Composite each fell more than 2%. It was the biggest one-day decline for the Dow and S&P 500 since June 16. The Nasdaq had its worst session since June 28.

Monday’s selloff was broad-based, with all 11 S&P 500 sectors in decline. A decline in tech stocks weighed on the tech-heavy Nasdaq.

“The global growth story is now in tatters,” said Ed Moya, senior market analyst at Onda. “You can’t keep America attractive while the rest of the world is crumbling because that’s what’s weighing on risk appetite right now.”

This sentiment will continue to weigh on large tech and consumer discretionary stocks, he said. Echoing other investors, Moya expects another round of hawkish pushback from Fed Chairman Jerome Powell when he speaks Friday at the Fed’s annual Jackson Hole Economic Symposium.

Results at Macy’s, Nordstrom and Dick’s Sporting Goods continue Tuesday. July new home sales will also be announced, along with the August manufacturing PMI and the August Richmond Fed survey.

See also  Liberal US lawmakers withdraw Ukraine letter

Leave a Reply

Your email address will not be published.