Stock futures fell Wednesday evening after the major averages snapped a two-day decline, buoyed by strong earnings and strong economic reports in June and July that pushed investors to weather the possibility of a recession.
Futures linked to the Dow Jones Industrial Average were down 23 points, or 0.07%. S&P 500 futures fell 0.1% and Nasdaq 100 futures lost 0.2%.
In normal trading hours, the three major averages ended the day higher. The Dow Jones advanced more than 400 points, while the S&P 500 hit its highest level since June. The tech-heavy Nasdaq Composite Index jumped about 2.5%.
Investors got the go-ahead to jump back into the defeated tech names after a surprise rebound in July services PMI and comments from St. Louis Fed President James Bullard. Pollard said The United States is not believed to be in a recessionciting job gains and a drop in the unemployment rate.
According to Barclays, “Tensions between the US and China remain elevated and the Fed continues its tough talk on inflation, but the earnings were enough to spur the next stage of the recovery.” “A wave of quarterly technical leagues came in better than expected, and [technology, media and entertainment, and telecommunications] The complex brought the S&P 500 index to a new QTD level. “
Investors will get another dividend boost on Thursday. Eli Lilly, Kellogg, Alibaba and ConocoPhillips are among those due to report quarterly results before the bell.
In economic data, investors are looking forward to the weekly jobless claims in the morning. Cleveland Federal Reserve Bank President Loretta Mester speaks at the Economic Club of Pittsburgh.
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