Stock futures flat after Wall Street selloff extends into third day
Trade on the NYSE floor on August 30, 2022.
Stock futures remained flat in overnight trading after Wall Street’s losing streak extended into its third day and jeopardized the market’s recent summer rebound.
Shares of Chewy fell more than 9% in extended trading after the pet products retailer issued weak earnings forecasts. Shares of HP Inc fell after the company missed earnings estimates.
Futures tied to the Dow Jones Industrial Average rose 0.08%, while S&P 500 and Nasdaq 100 futures traded flat.
Investors have sold off since Friday after hawkish remarks by Federal Reserve Chairman Jerome Powell. More recently, New York Fed President John Williams called for “a somewhat restrictive policy to slow demand.”
The selloff on Wall Street unfolded on Tuesday, with the Dow Jones Industrial Average slipping 308.12 points, or nearly 1%, to 31,790.87. The Nasdaq Composite fell 1.1% to 11,883.14. The S&P 500 fell 1.1% to 3,986.16, dropping below 4,000 for the first time since late July. All major averages were on track to end August with losses.
All sectors of the S&P 500 ended the regular trading session in negative territory, dragged down by energy, materials and industrials. As of Tuesday’s close, energy and utilities were the only sectors up year-to-date and on track to end the month with gains.
Despite Tuesday’s sell-off and hawkish remarks from the Fed, some investors are hopeful that the rate hike cycle may be coming to an end.
“We think we’re close to the end of this rate hike cycle, but that certainly depends on a lot of things,” Sand Hill Global Advisors chief investment officer Brenda Vingiello said on Tuesday’s “Closing Bell: Overtime.” CNBC. . “No doubt the Fed will raise rates in September, and probably twice more this year, but they will have done a lot by then and we will be in restrictive territory.”
Ahead of Friday’s closely watched August jobs data, more speeches from the Fed are scheduled for Wednesday. Chicago PMI and ADP employment data are also due in the morning.