Stock futures edged lower in overnight trading following a positive session on Wall Street, with major averages snapping a three-day losing streak. Futures tied to the Dow Jones Industrial Average slipped 0.1%, while S&P 500 futures and Nasdaq-100 futures both ticked down by 0.1% and 0.2%, respectively.
The market saw a mixed bag of performances on Wednesday, with the S&P 500 rising 0.51% and the Nasdaq Composite adding about 0.6%. The Dow Jones Industrial Average also gained nearly 76 points, or 0.2%. Nine of the 11 major S&P sectors finished higher, with utilities leading the way.
However, Victoria’s Secret saw a sharp decline of 25% in extended trading after reporting mixed quarterly results and disappointing guidance. On the other hand, New York Community Bancorp initially tumbled more than 40% during Wednesday’s session but managed to finish with a 7.5% gain after announcing a $1 billion capital raise. Apple continued its losing streak, falling for the sixth consecutive day.
Investors are closely watching Federal Reserve Chair Jerome Powell’s testimony on Capitol Hill for insights into the future of interest rate cuts. Powell indicated during Wednesday’s testimony before the House Financial Services Committee that the policy rate is at its peak for the current tightening cycle but emphasized that the Fed is not yet ready to start reducing rates.
“The market digested the reality that Powell was on board with respect to cutting rates this year. The question now becomes when, how often and how many cuts,” said Adam Sarhan, CEO of 50 Park Investments.
Looking ahead, investors are awaiting Powell’s remarks before the Senate Banking Committee on Thursday, as well as key economic data including jobless claims, trade balance, and consumer credit data for January. The highly anticipated February jobs report is also scheduled for release on Friday morning. Additionally, earnings reports from Broadcom, Costco Wholesale, and Kroger are on the horizon, adding to the market’s focus in the coming days.
