September 29, 2023

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Stock futures rose after major averages had their worst day since June

Stock futures rose after major averages had their worst day since June

Stock futures rose early Tuesday morning after stocks ended their worst day since June and Wall Street’s summer rally faded amid mounting concerns about an interest rate hike.

Futures related to the Dow Jones Industrial Average rose 25 points, or 0.08%, while the S&P 500 and Nasdaq 100 futures were marginally higher by 0.05% and 0.12%, respectively.

Zoom slumped in extended trading after lowering its full-year forecast, while Palo Alto Networks rose after posting strong quarterly results.

During Monday’s regular trading session, the Dow Jones fell 643.13 points, or 1.91%, to 33,063.61, while the S&P fell 2.14% to 4137.99, the worst day for both indexes since June 16. Today since June 28.

Monday’s sell-off was broad, with all 11 S&P 500 sectors closing lower, led by declines in IT and consumer discretionary stocks. The slide in technology stocks weighed heavily on the tech-heavy Nasdaq.

“The global growth story is in shambles right now,” said Ed Moya, chief market analyst at Oanda. “That’s really putting pressure on the risk appetite right now because you can’t make the United States continue to be attractive while the rest of the world collapses.”

He said that sentiment will continue to pressure big tech companies and consumer discretionary stocks. Moya, echoing other investors, expects another round of hawkish decline from Federal Reserve Chairman Jerome Powell when he speaks Friday at the central bank’s annual Jackson Hole Economic Symposium.

Earnings season continues Tuesday with results from Macy’s, Nordstrom and Dick’s Sporting Goods. New home sales for July will also be released, along with the August manufacturing PMI and the Richmond Fed survey for August.

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