Stock futures were up early Wednesday after Wall Street’s losing streak went on for the third day, which threatened the market’s recent recovery from the summer slump. Shares of Chewy fell more than 11% in after-hours trading after the retailer of pet products gave bad guidance about future sales. The stock of HP Inc. went down after the company didn’t make as much money as expected.
Futures on the Dow Jones Industrial Average went up by 178 points or 0.56 percent. The S&P 500 also went up by 0.56%, and futures for the Nasdaq 100 went up by 0.65%. Investors have sold off a lot since Friday when Federal Reserve Chair Jerome Powell said things that made investors nervous.
Recently, John Williams, president of the New York Fed, called for a “somewhat restrictive policy” to slow down demand. Wall Street continued to drop in value on Tuesday, with the Dow Jones Industrial Average dropping nearly 1%, or 308.12 points, to 31,790.87. The Nasdaq Composite fell 1.1% and now stands at 11,883.14. The S&P 500 fell 1.1% to 3,986.16, which is the first time since late July that it has been below the 4,000 mark.
All of the major averages were on track to lose money in August. All of the S&P 500 sectors ended the regular trading session in the red. Energy, materials, and industrials led the way down. As of the end of trading on Tuesday, only the energy and utilities sectors were up so far this year and on track to end the month with gains.
Even though stocks fell on Tuesday and the Fed said some hawkish things, some investors are still hopeful that the rate-hiking cycle may be coming to an end. On CNBC’s “Closing Bell: Overtime” on Tuesday, Brenda Vingiello, a chief investment officer of Sand Hill Global Advisors, said, “We think we’re close to the end of this rate-hiking cycle, but it depends on a lot of things.”
“There’s no doubt that the Fed will raise interest rates in September, and probably twice more this year. But by then, they will have done a lot, and we will be in a restrictive zone.” On Wednesday, the Fed will give more speeches before the August jobs report comes out on Friday. ADP employment data and the Chicago PMI will also be released in the morning.
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