Stock futures rose early on Tuesday, as Wall Street’s summer rally faded amid rising rate hike concerns after stocks ended their worst day since June.
Futures linked to the Dow Jones industrial average added 25 points, or 0.08%, while S&P 500 and Nasdaq 100 futures edged up 0.05% and 0.12%, respectively.
Zoom fell in extended trading after cutting its full-year forecast, while Palo Alto Networks rose after posting strong quarterly results.
During Monday’s regular trading session, the Dow fell 643.13 points, or 1.91%, to 33,063.61, while the S&P fell 2.14% to 4,137.99, the worst day for both benchmarks since June 16. June 28 is the first day.
Monday’s selloff was broad-based, with all 11 S&P 500 sectors in decline. A decline in tech stocks weighed on the tech-heavy Nasdaq.
“The global growth story is now in tatters,” said Ed Moya, senior market analyst at Onda. “You can’t keep America attractive while the rest of the world is crumbling because that’s what’s weighing on the risk appetite right now.”
This sentiment will continue to weigh on large tech and consumer discretionary stocks, he said. Echoing other investors, Moya expects another round of hawkish pushback from Fed Chairman Jerome Powell when he speaks Friday at the Fed’s annual Jackson Hole Economic Symposium.
Results at Macy’s, Nordstrom and Dick’s Sporting Goods continue Tuesday. July new home sales will also be announced, along with the August manufacturing PMI and the August Richmond Fed survey.
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