U.S. stock futures fell Wednesday morning after the S&P 500 posted its best two-day gain in about two years.
Dow Jones Industrial Average futures were down 150 points, or 0.49%. S&P 500 and Nasdaq 100 futures fell 0.53% and 0.55% respectively.
In Tuesday’s regular session, the Dow jumped about 825 points, or 2.8%. The S&P 500 gained nearly 3.1%, while the Nasdaq Composite rose 3.3%.
The back-to-back days of gains came on the back of a pullback in bond yields, with the 10-year Treasury yield falling below 3.6% at one point after briefly rising above 4% last week.
During this time, a weakening in the most recent job vacancies data some investors wonder if the Federal Reserve will slow the pace of interest rate hikes.
Market participants wondered if these signs could mean that markets had finally priced in after the steep declines of the previous quarter.
“I don’t think you need to worry about a recession until the second half of 23,” Stifel chief equity strategist Barry Bannister said on CNBC’s “Closing Bell: Overtime” on Tuesday. “So there is room for a rally early next year.”
Traders expect a series of economic reports on Wednesday. Data on weekly mortgage applications are expected. ADP’s September private payroll report is due out at 8:15 a.m. ET. The latest international trade reading is scheduled for 8:30 a.m. ET, while the ISM services index is scheduled for release at 10 a.m. ET.