Stock futures are flat as Nasdaq tries to recover from 7-day losing streak

Equity futures were flat on Wednesday after major averages added weeks of losses amid a jump in bond yields in the previous session.

Futures linked to the Dow Jones Industrial Average were trading just 7 points higher. S&P 500 futures edged up 0.1% and Nasdaq 100 futures edged up 0.2%.

Shares added to their three-week slide on Tuesday. The Dow Jones fell about 173 points, or 0.5%, and the S&P 500 slipped 0.4%. The Nasdaq Composite fell 0.7% to record its first seven-day losing streak since 2016.

The moves came amid a surge in bond yields that saw the 10-year US Treasury yield hit its highest level since June. The 30-year Treasury rate closed at its highest level since 2014. Bond yields move inversely to prices. Rates fell slightly on Wednesday, with the 10-year trading at 3.321%. The 2-year and 30-year yields were trading at 3.47% and 3.472% respectively.

Investors are divided on how to approach the market as they enter the first post-Labor Day week in September, a notoriously cruel month for stocks. All eyes are on the 3,900 level of the S&P 500. Some see the index falling to even lower lows, while others are bullish on a year-end rally.

“This is the battleground,” NewEdge Wealth chief investment officer Cameron Dawson told CNBC.Closing bell: extra time“It was resistance and support, and anytime you have those spots where you have a lot of resistance and support consolidation, we’re going to see a lot of fighting to see where we push above or below .”

“If we hold 3,900, that’s a bullish signal,” she added. “That means the market is sensing a change in liquidity, ready to put a higher multiple on things sustainably… If we don’t, then that 3,600 will be in play in the near term.”

On Wednesday, the Federal Reserve will deliver its summary of current economic conditions, also known as beige book. Elsewhere, Fed Chairs Loretta Mester of Cleveland and Tom Barkin of Richmond, as well as Fed Vice Chair Lael Brainard, are expected to speak at various events.

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