Stocks were moving higher Wednesday with major indexes looking to snap a losing streak as jobs data in the day and week ahead possibly providing the next catalyst for a swing in investor sentiment.
Futures for the Dow Jones Industrial Average rose 60 points, or 0.2%, after the index tumbled 308 points Tuesday to close at 31,790. S&P 500 futures signalled a start 0.2% into the green with the tech stock-heavy Nasdaq poised to gain 0.4%. The S&P 500 and Nasdaq each lost 1.1% in the previous session.
The major indexes have notched three days of losses, set off by a hawkish speech last Friday from Federal Reserve Chairman Jerome Powell indicating that interest-rate hikes were unlikely to stop until red-hot inflation was fully tamed. Strong economic data on Tuesday prompted the latest leg downward, with signs of a healthy economy raising the prospect that the Fed can continue tightening financial conditions without plunging the U.S. into recession.
“Markets are still dealing with the fallout of the hawkish comments from Jackson Hole last week, with no let-up in the jawboning,” said Neil Wilson, an analyst at broker Markets.com. “The S&P 500 now under its 50-day moving average, where it’s traditionally negative. The last time it fell below this level was back in April, which preceded a roughly 15% decline.”
The day ahead sees the ADP employment report for August, which will set the stage for the headline U.S. jobs report on Friday.
Write to Jack Denton at email@example.com