Stock futures fell on Wednesday afternoon after major media snapped a two-day slide, helped by strong earnings and stronger economic reports for June and July that led investors to look past the possibility of a recession.
Futures tied to the Dow Jones Industrial Average fell 23 points or 0.07%. S&P 500 futures slipped 0.1% and Nasdaq 100 futures lost 0.2%.
In normal trading hours, all three major averages finished the day higher. The Dow advanced more than 400 points, while the S&P 500 hit its highest level since June. The tech-heavy Nasdaq Composite jumped about 2.5%.
Investors got the green light to jump back in hitting up technology names after a surprise rebound in July services PMI and comments from St. Louis Federal Reserve President James Bullard. Bullard said he doesn’t think the US is in recessionciting job gains and low unemployment.
“Tensions between the US and China remain high and the Fed continues to talk tough on inflation, but the earnings were enough to catalyze the next phase of the rebound,” according to Barclays. “A wave of Tech quarters came in better than expected, and the [technology, media and entertainment, and telecommunications] complex brought the S&P 500 to a new QTD high.”
Investors will receive another batch of earnings on Thursday. Eli Lilly, Kellogg, Alibaba and ConocoPhillips are among those scheduled to report quarterly results before the bell.
In economic data, investors look forward to weekly jobless claims this morning. Federal Reserve Bank of Cleveland President Loretta Mester speaks at the Economic Club of Pittsburgh.