S&P 500 futures were little changed after the end-of-day rally and minutes ahead of the Fed

U.S. stock futures were flat on Tuesday night after the market made a major midday reversal, with falling bond yields fueling growth stocks and ahead of a flurry of economic data. economic.

Futures contracts tied to the Dow Jones Industrial Average fluctuated around the flat line. S&P 500 and Nasdaq 100 futures contracts were also little changed.

In normal trading, the Dow lost 129 points to start the short week, paring heavier losses than at the start of the session. The S&P 500 index rebounded after a 2% drop in the last trading hour and ended the day up 0.2%. The tech-heavy Nasdaq Composite fared better, up 1.75%.

Will the near-recession market continue to worry investors after the benchmark 10-year U.S. Treasury yield falls below the 2-year yield. So-called yield-curve inversions have historically been a warning sign that the economy may be in recession or already in recession.

Oil prices drops below $100 a barrel Third, continue to reflect the possibility of economic decline. Energy stocks were the biggest losers on Tuesday. The whole industry fell 4%. It was the top performing sector in the S&P 500 for the first half of this year, the benchmark index’s worst first half since 1970.

Still, Wall Street analysts say a recession could be mild. On Tuesday, Credit Suisse said it saw the US avoid recession because it slashed its S&P 500 target at year-end to reflect the effect of higher capital expenditures on stock valuations.

“[The market] was prepared for [a recession], and now it might actually be embracing it, the idea is: get through it, we’re going to have a recession, let’s do it. Let’s get rid of the redundancy and start from scratch,” Ed Yardeni of Yardeni Research said on CNBC’s “Closing Bell: Overtime.”

He added: “The market is starting to look ahead to next year and that could very well be a year of recovery compared to whatever this degrading environment plays out in. “We’re all doing a Hamlet recession – it’s happening or not. I think there’s going to be a mild recession.”

NewEdge Wealth’s chief investment officer, Cameron Dawson, echoed that sentiment.

“We have a kind of decline that looks like it’s in that 30% range, which is the average for recessions, or something that looks closer to 50%, that’s what we’ve seen. in the early 2000s and 2008 where we had two debt crises?” she said. “We don’t see a debt crisis. We think we might start to find some value around that 3,400-3,500 level because that’s what brought us back to pre-Covid highs.”

No major earnings reports are scheduled for Wednesday, but there will be a flurry of economic reports, including minutes from the Federal Reserve’s June meeting in the afternoon.

Investors are also looking forward to the latest on the Mortgage Bankers Association’s mortgage buying index at 7:00 a.m. ET Wednesday. The latest Markit and Institute for Supply Management manufacturing PMI data will be released at 9:45 a.m. and 10:00 a.m., respectively. The Job Opportunity and Labor Turnover Survey, or JOLTS, will also be released at 10:00 am