Stock futures inch lower after Wednesday’s big market rally

Stock futures fell slightly on Thursday morning after the Dow Jones Industrial Average returned to its lowest level for the year.

Dow Jones-linked futures slid 22 points, or 0.07%, while S&P 500 and Nasdaq 100 futures lost 0.08% and 0.2%, respectively.

The overnight moves came on the back of a broad rally for stocks as the Bank of England said it would buy bonds in a bid to stabilize its financial markets and the falling pound sterling. Sterling stooped to record lows against the US dollar in the last days.

This marked a dramatic shift from the aggressive tightening campaign that many global central banks have undertaken to deal with soaring inflation.

In regular trade Wednesday, the Dow gained 548.75 points, or 1.88%, to 29,683.74, while the S&P 500 rose 1.97% to 3,719.04, after hitting a new low in the bear market tuesday. Both indices ended a six-day losing streak. The Nasdaq Composite rose 2.05%, closing at 11,051.64.

As stocks rose and The BOE has shared its plan to buy bondsthe yield on the benchmark 10-year Treasury fell the most since 2020 after briefly exceeding 4%.

“If the market had a negative sign ahead of it today, and not a positive sign, it wouldn’t surprise me,” said Liz Ann Sonders, chief investment strategist at Charles Schwab. “The market is going to do what it does on any given day. You can try to point fingers at what might have been behind it, but that’s just a board game. The market has been in big part oversold and buyers stepped in.”

Wednesday’s rally put major averages on pace to make small gains for the week, but they are still on track to end their worst month since June. The Nasdaq Composite leads the monthly losses, down around 6.5%, while the Dow Jones and S&P are poised to close down 5.8% and 5.9% respectively.

On a quarterly basis, the Nasdaq is on track to break a two-quarter losing streak, while the Dow Jones is heading for its third consecutive quarterly loss for the first time since the third quarter of 2015. The S&P is on track for its third consecutive negative quarter for the first time since its six-quarter negative streak that ended in the first quarter of 2009.

Earnings continue Thursday with results from Nike, Bed Bath & Beyond and Micron Technology. Early unemployment claims and other speeches from Federal Reserve leaders are also expected.

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