How are stock-index futures trading:
S&P 500 futures are up 0.2%.
Dow Jones Industrial Average futures are adding 0.2%.
Nasdaq 100 futures are gaining 0.3%.
On Tuesday, the Dow Jones Industrial Average fell 178 points, or 0.42%, to 42,528, the S&P 500 declined 66 points, or 1.11%, to 5,909, and the Nasdaq Composite dropped 375 points, or 1.89%, to 19,490.
Futures indicate U.S. stock-indices may struggle to rally much after the latest reversal, when concerns about sticky inflation caused benchmark bond yields to hit 8-month highs, which in turn encouraged heavy profit-taking in recent high flying stocks such as Nvidia, Palantir and MicroStrategy.
“Cold buckets of caution have been thrown around as multiple data points indicate that higher inflation is becoming persistent,” says Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, noted Tuesday’s stronger-than-expected report on U.S. job openings also helped kick the expectation of the next Fed cut further down the road.
“A May cut is now a coin flip, and many believe that the Fed may want to wait until June to announce its next rate cut,” Ozkardeskaya says.