Stock futures little changed after Tuesday’s intraday comeback


U.S. stock futures were largely flat on Tuesday evening as investors looked to see whether a late-day swing in the market would continue into Wednesday.

Futures contracts for the Dow Jones Industrial Average hovered near the flat line, while those tied to the S&P 500 and the Nasdaq 100 slipped 0.1% and 0.2%, respectively.

The move in futures follows a wild comeback during Tuesday’s market hours that saw the Dow and S&P 500 erase sharp losses to finish modestly higher. The positive finish snapped a five-day skid for the S&P 500. The Nasdaq Composite, which was down nearly 4% at point, finished with a loss of just 0.5%.

The rebound began after Federal Reserve Chair Jerome Powell released his prepared remarks for a hearing with the Senate Banking Committee, with the central bank chief saying that inflation was “soft” and that the U.S. economy was “a long way from our employment and inflation goals.” Bond yields had perked up in recent weeks, feeding fears that the Fed might alter its dovish policy stance.

Marci McGregor, senior investment strategist at Bank of America Merrill Lynch, said on “Closing Bell” market sentiment pointed to a needed pullback but the overall setup for stocks remained positive.

“We’re still in the earnings of a new economic expansion. Our view is we’re in a long-term secular bull market,” McGregor said. “We heard from Jay Powell today, and it sounds like he still has his foot on the gas.”

The market’s overall rebound on Tuesday was mirrored in the moves of tech giant Apple and electric-vehicle stock Tesla, which finished with losses of 0.1% and 2.2%, respectively, after suffering much steeper losses earlier in the day. Energy stocks and financials outperformed, while tech and consumer discretionary plays lagged the broader market.

Bitcoin also struggled on Tuesday, falling back below the $50,000 level.

On Wednesday, Powell’s visit to Capitol Hill will continue when he addresses the House of Representatives Financial Services Committee. Investors will also get another look at the construction industry with data on new home sales and an earnings report from Lowe’s.



Source link

Discover

Sponsor

Latest

2020 was a ‘wake-up call’ for TV advertising says The Trade Desk CEO

Jeff Green, CEO of The Trade DeskScott Mlyn | CNBCThe Trade Desk CEO and co-founder Jeff Green says last year was a wake-up...

WHO says vaccine trial updates are ‘encouraging’

Laboratory technicians handles capped vials as part of filling and packaging tests for the large-scale production and supply of the University of Oxfords...

2022 Maserati MC20 will influence designs of future models

Maserati's recently-unveiled MC20 coupe points to the direction stylists will take the rest of the company's range in during the 2020s. Its proportions...

Changing your portfolio based on this election may be a mistake as the Fed could matter more

A person walks by a boarded up Saks Fifth Avenue on November 1, 2020 in New York City. Businesses have taken to boarding...

Doctor discusses study that suggests mouthwash may help inactivate coronavirus : Health

Mouthwash companies have been slapped down before after claiming that they kill cold and flu viruses. Not because it isn't technically true, but...