US futures fell slightly on Wednesday night as economic concerns dragged investor sentiment lower.
Futures tied to the Dow Jones Industrial Average fell 58 points, or 0.18%. S&P 500 futures fell 0.14% and Nasdaq 100 futures fell 0.15%.
Shares of pet retailer Chewy jumped nearly 20% hours after the company reported strong quarterly results. Clothing retailer PVH also posted gains, with shares up more than 4%.
Meanwhile, Hewlett Packard Enterprise fell more than 6% after a slight decline in both earnings and revenue.
In regular trading, stocks started June with a drop amid volatile trading. The Dow fell 176.89 points, or 0.5%. The S&P 500 fell nearly 0.8 percent and the Nasdaq Composite dropped 0.7 percent.
Sentiment heavy after JPMorgan CEO Jamie Dimon warned that an economic “storm” caused by the Federal Reserve and the war in Ukraine is breaking out. He said his company “will be very cautious with our balance sheet.”
On top of that, new data shows the economy is still hot. The April employment numbers, released on Wednesday, decline from last month – but the findings suggest the job market remains tight. Furthermore, the Institute of Supply Management said its manufacturing PMI came in at 56.1 in May, up from 55.4 in the previous month.
“The market has remained volatile with a negative bias since early June,” said Rob Haworth, senior investment strategist at US Bank Wealth Management. boosted by higher oil prices and consumer concerns in the Fed’s Beige Book economic report. “
Indeed, the central bank’s report shows that the United States has experienced only “light or modest” economic growth over the past two months.
“Our view is cautious as we close out the second quarter,” added Haworth. “Global central bank uncertainty and the pace of monetary policy tightening, global agricultural and energy markets remain tight – which could lead to prices remaining higher – and difficulties to corporate earnings growth are risks to investors going forward.”
Retail earnings continue this week, with Designer Brands, Lululemon Athletica and RH reporting on Thursday. Big tech names like CrowdStrike and Okta are also present.
Investors are also monitoring employment data for insights into how employers and employees are managing inflation. The ADP will post data from its national jobs report at 8:15 a.m. ET on Thursday, just before the Labor Department releases weekly jobless claims.
