Stock futures rose early Tuesday morning after stocks ended their worst day since June and Wall Street’s summer rally faded amid mounting concerns about an interest rate hike.
Futures related to the Dow Jones Industrial Average rose 25 points, or 0.08%, while the S&P 500 and Nasdaq 100 futures were marginally higher by 0.05% and 0.12%, respectively.
Zoom slumped in extended trading after lowering its full-year forecast, while Palo Alto Networks rose after posting strong quarterly results.
During Monday’s regular trading session, the Dow Jones fell 643.13 points, or 1.91%, to 33,063.61, while the S&P fell 2.14% to 4137.99, the worst day for both indexes since June 16. Today since June 28.
Monday’s sell-off was broad, with all 11 S&P 500 sectors closing lower, led by declines in IT and consumer discretionary stocks. The slide in technology stocks weighed heavily on the tech-heavy Nasdaq.
“The global growth story is in shambles right now,” said Ed Moya, chief market analyst at Oanda. “That’s kind of the effect on risk appetite right now because you can’t make the United States continue to be attractive while the rest of the world collapses.”
That sentiment will continue to pressure big tech companies and consumer choice stocks, he said. Moya, echoing other investors, expects another round of hawkish decline from Federal Reserve Chairman Jerome Powell when he speaks Friday at the central bank’s annual Jackson Hole Economic Symposium.
Earnings season continues Tuesday with results for Macy’s, Nordstrom and Dick’s Sporting Goods. New home sales will also be released in July, along with the August manufacturing PMI and the Richmond Fed survey for August.
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