U.S. stock futures were lower on Tuesday evening as investors looked to construct on a solid rally.
Futures for the Dow Jones Industrial Average shed 93 points, or 0.29%. S&P 500 futures sat 0.18% lower while Nasdaq 100 futures slipped 0.32%.
The move in futures got here because the stock market’s recent sell-off appeared to have paused. On Tuesday, the Dow rose 431 points, or 1.3%, while the S&P 500 gained 2% and the Nasdaq Composite climbed nearly 2.8%.
The Dow has declined for seven straight weeks, but stocks have stabilized during the last three trading sessions.
Last week, the S&P 500 fell to the brink of a bear market — or 20% below its record high — however the index has now gained 4% since Thursday’s close.
Stocks and other risk assets have been pressured by inflation and the Federal Reserve’s try to tamp down price increases through rate hikes, which has led to concerns a few potential recession. Fed Chair Jerome Powell said at a Wall Street Journal conference on Tuesday that “there won’t be any hesitation” about raising rates until inflation is under control.
Nevertheless, some recent economic data, including the roles report and retail sales data from April, still show the U.S. economy growing.
“There’s an enormous difference between corrections within the equity markets and outright bear markets,” said Matt Stucky, a senior portfolio manager at Northwestern Mutual Wealth Management. “The difference being bear markets are almost all the time form of related to some form of recessionary macroeconomic environment, or not less than an inevitable one within the forecast horizon over the subsequent six-to-12 months. For us, as we sit here today, we just don’t see that.”
A busy week of retail earnings continues on Wednesday, with Goal and Lowe’s reporting results before the opening bell.
Investors may also get an updated take a look at the housing market, with data for housing starts and constructing permits for April due out Friday morning.