US stock futures fell on Wednesday, putting Wall Street on the right track to give up some of its sharp gains from the past two sessions.
Dow Jones Industrial Average futures were down 275 points, or 1%. S&P 500 and Nasdaq 100 futures were down 1% and 0.9%, respectively.
On Tuesday, the Dow jumped 825 points, or 2.8%. The S&P 500 rose about 3.1%, while the Nasdaq Composite advanced 3.3%. These gains, which came on the back of lower bond yields, led to the strongest two-day extension for the S&P 500 since 2020.
Meanwhile, a Weakness in the latest job opportunities data Some investors were considering whether the Federal Reserve would slow the pace of interest rate hikes.
Market participants wondered if these signs could mean that markets have finally settled on the bottom after sharp declines in the previous quarter.
“I don’t think you should worry about a recession until the second half of ’23,” Barry Bannister, chief equity strategist at Stifel, said Tuesday on CNBC’s “Closing Bell: Overtime.” “So there is room for a gathering as we enter the first part of next year.”
Traders are anticipating a large batch of economic reports on Wednesday.
Data on weekly mortgage applications is expected. The ADP jobs report for September is due out at 8:15 AM ET. The latest international trade reading is due at 8:30 AM ET, while the ISM Services Index is set to be released at 10 AM ET.