Stock futures were flat in overnight trading Tuesday after the most important averages made a failed attempt at a bounce.
Futures tied to the Dow Jones Industrial Average edge 0.13% or 39 points, while the S&P 500 and the Nasdaq Composite rose 0.13% and 0.17%, respectively.
Pinterest shares jumped greater than 4% after hours on news that CEO Ben Silbermann is stepping down.
During regular trading on Tuesday the Dow Jones Industrial Average dropped 491.27 points, or 1.56%, to 30,946.99, while the S&P 500 slid 2.01% to three,821.55. The Nasdaq Composite fell 3% to 11,181.54.
Major averages rallied earlier within the session, with the Dow and S&P 500 up as much as 446 points and 1.17%, respectively. Markets gave up those gains following a disappointing consumer confidence index reading, which got here in at 98.7 and missed Dow Jones’ estimate of 100. The moves followed slight losses in Monday’s session after the averages posted their best week for June last week.
Because the second quarter involves an end on Thursday, there are rising recession fears. Concern over a slowing economy and aggressive rate hikes consumed much of the primary half of 2022 as investors proceed to look for a bottom to a vicious market sell-off.
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The S&P 500, which is down about 20% in 2022, is on pace for its worst first half of the 12 months since 1970, when the index lost 21.01%. Meanwhile, on a quarterly basis, each the Dow and S&P 500 are on the right track for his or her worst performance since 2020. The Nasdaq is headed toward its worst three-month period since 2008.
All the most important averages ended Tuesday’s session within the negative, apart from energy, which rose 2.7% as oil prices rallied.
Just three Dow stocks ended the day higher, with the losses led by Nike. Shares of the sportswear company fell 7% after it warned that higher transportation costs and shipping delays would likely persist.
Beaten-up chip stocks Nvidia and Advanced Micro Devices ended the day greater than 6% lower while big technology names including Netflix, Amazon and Meta Platforms closed down about 5% each.
“So long as the sell-off is orderly,” the Fed is “not concerned with the extent of stock prices,” Guggenheim Partners’ Global CIO Scott Minerd told CNBC’s “Closing Bell: Additional time” on Tuesday. “The underside line is until we see some amount of panic here or something that gets the central bankers concerned, they are only ‘hellbent’ to get inflation under control.”
Investors on Tuesday continued to maintain an in depth eye on China, which eased Covid restrictions for inbound travelers and slashed quarantine time to seven days. Casino stocks Wynn Resorts and Las Vegas Sands moved higher on the news.
On Wednesday, investors are looking forward to comments from Federal Reserve Chairman Jerome Powell on the European Central Bank forum. Earnings from Bed Bath & Beyond, General Mills and McCormick are also on deck.
