Stock futures rose slightly in overnight trading as Wall Street braced for the Federal Reserve’s latest meeting minutes and more insight on the central bank’s future hiking agenda.
Shares of Palo Alto Networks popped after the bell as the cybersecurity company lifted its earnings forecast for the year. Crypto exchange platform Coinbase topped revenue expectations.
Futures tied to the Dow Jones Industrial Average added 47 points, or 0.14%. Meanwhile, futures linked to the S&P 500 inched 0.12% higher, and Nasdaq 100 futures gained 0.16%.
Mounting concerns that the Federal Reserve will continue hiking rates spooked investors during regular trading Tuesday and pushed stocks to cap off their worst day of 2023. A slew of earnings reports, including disappointing results from Home Depot, also sparked concerns about the health of the consumer.
The Nasdaq Composite led the session’s losses, falling 2.5%, while the S&P 500 slumped 2%. The Dow Jones Industrial Average dropped 2.06% and turned negative for the year. All major S&P sectors finished with losses, led to the downside by consumer discretionary.
Rising bond yields also kept the market on edge, with the rate on the 10-year Treasury note hitting its highest level since November during the day.
“I think there’s a repricing of the equity market based on the view that the Fed will likely have to be higher for longer, and because of the rising interest rates,” said Truist’s co-chief investment officer Keith Lerner.
Attention now shifts toward the Fed minutes due out Wednesday. Investors will scour the results for insight into the central bank’s future rate hiking path and its recent 25 basis point increase.
Earnings season rolls on with results from Nvidia, Etsy and Baidu.
2 HOURS AGO
Where the major averages stand after Tuesday’s selloff
This is where all the major averages stand for 2023 and February after posting their worst session of the year and worst day since Dec. 15.
Dow Jones Industrial Average:
Down 0.05% in 2023
Down 2.81% in February
10.35% off record high
81.89% off pandemic low
S&P 500:
Up 4.11% for the year
Down 1.94% in February
17.04% off record high
82.37% off pandemic low
Nasdaq Composite:
Up 9.8% for the year
Down 0.8% this month
29.11% % off record high
73.30% off pandemic low
— Samantha Subin, Chris Hayes
JPMorgan chief strategist sees another 5% drop in equity market
The equity market might see a 5% drop in the near-term, while high-beta tech stocks could move between 5% and 10% lower, JPMorgan’s Marko Kolanovic told CNBC’s “Closing Bell: Overtime” on Tuesday.
The chief global market strategist holds a 4,200 price target on the S&P 500 for 2023. This, he said, leaves room for a potential near-term selloff, followed by potential lows, before the Fed begins — or signal — cutting rates.
“We really think the Fed will need to cut the rates for the market to rally on a sustainable basis,” Kolanovic said.
The broader index slid 2% on Tuesday to close 3,997.34 and complete its worst day since Dec. 15, when it fell 2.5%.
– Pia Singh
3 HOURS AGO
Stock futures open slightly higher
Stock futures opened slight higher on Tuesday evening.
Futures tied to the Dow Jones Industrial Average gained 30 points, or 0.09%. Meanwhile, futures linked to the S&P 500 added 0.07%, and Nasdaq 100 futures rose 0.11%.
— Samantha Subin