Stock futures are flat after Wall Street's sell-off stretches into third day

Trader on the floor of the NYSE Aug. 30, 2022.

Source: NYSE

Stock futures were flat in overnight trading after Wall Street’s losing streak stretched into its third day and endangered the market’s recent summer rebound.

Shares of Chewy tumbled more than 9% in extended trading after the pet products retailer issued weak revenue guidance. HP Inc’s stock dipped after the company missed revenue expectations.

Futures tied to the Dow Jones Industrial Average inched 0.08% higher, while S&P 500 and Nasdaq 100 futures traded flat.

Investors have sold off heavily since Friday after hawkish remarks from Federal Reserve Chair Jerome Powell. Most recently, New York Fed President John Williams called for “somewhat restrictive policy to slow demand.

The sell-off on Wall Street rolled into Tuesday, with the Dow Jones Industrial Average sliding 308.12 points, or nearly 1%, to 31,790.87. The Nasdaq Composite dropped 1.1%, to 11,883.14. The S&P 500 slumped 1.1% to 3,986.16, falling below the 4,000 mark for the first time since late July. All the major averages were on pace to finish August with losses.

All S&P 500 sectors finished the regular trading session in negative territory, led to the downside by energy, materials and industrials. As of Tuesday’s close, energy and utilities were the only sectors up year to date and on pace to end the month with gains.

Despite Tuesday’s sell-off and hawkish Fed remarks, some investors are hopeful that the rate hiking cycle could be nearing its end.

“We think we’re close to the end of this rate-hiking cycle, but it certainly depends on a lot of things,” Brenda Vingiello, chief investment officer of Sand Hill Global Advisors said on CNBC’s “Closing Bell: Overtime” on Tuesday. “No doubt the Fed’s gonna raise rates in September, and likely two more times this year, but they will have at that point done a lot and we will be in restrictive territory.”

Ahead of Friday’s closely watched August jobs data, more Fed speeches are slated for Wednesday. Chicago PMI and ADP employment data are also due out in the morning.

Leave a Reply

Your email address will not be published. Required fields are marked *