Stock futures slip after major averages register two days of losses

Stock futures are down as investors emerged from a tumultuous day with rising bond yields and wide-ranging corporate earnings.

Nasdaq 100 futures slid 0.7%, while futures linked to the Dow Jones Industrial Average lost 52 points or 0.17%. S&P 500 futures fell 0.35%.

indexes saw a second consecutive day of slides during regular exchanges, the Dow losing 90.22 points, or 0.3%. The S&P 500 and the Nasdaq Composite fell 0.8% and 0.6% respectively.

It was a day that started off on better footing for the Dow Jones, which hit nearly 400 points at session highs, but the rise in Treasury yields was pared and threw cold water on the markets. shares. The 10-year Treasury yield hit a high of 4.239%, a level not seen since 2008.

But even with today’s losses taken into account, the major averages are still up more than 2% for the week – propelled by the rallies on Monday and Tuesday – and are on pace with the best week since. september.

Corporate earnings were mixed. AT&T and IBM were among the stocks that surged after beating estimates. But Snap and Robert Half were among those who fell after those companies reported results below expectations.

Thursday’s trading fits a larger picture of nervous investors making instinctive decisions based on the day’s news, said Jamie Cox, managing partner of Harris Financial Group. He said investors are increasingly turning to short-term strategies as they see the Federal Reserve creating a volatile market as it seeks to lower inflation through interest rate hikes.

“The markets are looking for every sign that the inflation data is moving in a way that the Fed might cut its interest rate pace, and basically ignoring the speakers and the governors, and basically ignoring whatever the Fed has to say. say,” Cox said.

“It lends itself to very, very choppy exchanges because people are happy with the trigger and just waiting for the signal that the break is coming,” he said. “It’s a bad way to trade and it brings a lot of volatility.”

Investors will be watching earnings before the Verizon bell as the corporate reporting season continues.

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