US stock index futures were modestly lower in overnight trading Wednesday, after key averages ended the day higher despite tensions escalate between Russia and Ukraine.
Futures contracts tied to the Dow Jones Industrial Average fell 28 points. S&P 500 futures fell 0.11%, while Nasdaq 100 futures fell 0.2%.
During regular transactions on Wednesday The Dow gained nearly 600 points, or 1.79%, ending a two-day losing streak. The S&P 500 gained 1.86%, while the Nasdaq Composite added 1.62%. This is the 4th positive session of the high-tech index in the past 5 sessions.
Wednesday’s rally was broad-based, with all 11 S&P 500 sectors rallying. Visa was the only component of the Dow that fell, with 29 other stocks in the benchmark index ending the day in the green. Caterpillar was the top gainer, up more than 5%.
The market has been volatile in recent sessions as investors assess the risks to the US economy posed by Russia’s war in Ukraine.
“The situation is going really well in Ukraine,” Scott said. Wren, senior global market strategist at Wells Fargo Investment Institute.
Despite Wednesday’s gains, all three major averages are down more than 4% month-over-month, with the Nasdaq Composite remaining in correction territory. Ed Moya, senior market analyst at Oanda, says volatility is likely to continue.
“The appetite for risk will struggle to return fully until the war in Ukraine draws to a close,” he said. “Wall Street wants to get out of the defensive play and prevent overcrowding on utilities, healthcare and consumer goods,” Moya added.
Wednesday’s broad market strength comes despite continuing oil prices, which are contributing to inflation concerns across the economy. West Texas Intermediate crude futures contractUS oil standard, top $112 per barrel During Wednesday’s trading, the price was last seen in May 2011.
In the midst of rampant inflation Federal Reserve Chairman Jerome Powell said he remained committed to easing cost pressures through rate hikes, despite the ongoing instability in Ukraine.
“We will avoid adding uncertainty to what has been an extremely difficult and uncertain time,” he said under questioning by members of the House Financial Services Committee.
“To the extent that inflation moves higher or consistently above that, we will be prepared to act more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or otherwise,” he added. the meeting. Powell will testify again tomorrow before the Senate Banking Committee.
Return on benchmark US Treasury 10 years rose Wednesday to around 1.9%, after falling below 1.7% in the previous session.
One strong separate payroll report on Wednesday also boosted sentiment on Wall Street. Every Thursday, jobless claims are posted, with economists calling for a print of 225,000, according to estimates from Dow Jones.
This reading comes ahead of February’s highly anticipated jobs report, due out on Friday. Economists are expecting 440,000 jobs to be added this month. January’s report shows a 467,000 yen increase.
PMI and ISM Services readings will also be released on Thursday morning.
On the earnings front, several retailers are set to release results before the opening bell, including Big Lots, BJ’s Wholesale, Burlington Stores and Kroger. Broadcom, Costco and Gap are in the works after the market closes.
