Traders work on the trading floor of the New York Stock Exchange on the afternoon of April 2, 2024 in New York City.
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U.S. stock futures were mixed Wednesday night after the Dow Jones Industrial Average fell for a third straight session.
Futures and 30 stocks in the Dow Jones Index It fell 43 points, or 0.11%. S&P 500 Index Futures rose 0.11%, while Nasdaq 100 Futures Add 0.38%.
The Dow Jones Industrial Average fell 0.1% during the main trading session on Wednesday, marking its third consecutive day of losses.at the same time S&P 500 Index and Nasdaq Index They rose only slightly by 0.1% and 0.2% respectively.
Investors are worried that the Federal Reserve may keep interest rates higher for longer, weighing on the stock market. Federal Reserve Chairman Jerome Powell said on Wednesday that policymakers need more evidence that inflation is approaching the central bank’s 2% guideline before cutting interest rates. Atlanta Fed President Raphael Bostic also told CNBC that he thinks a rate cut is likely.
As a result, Wall Street has adjusted its rate cut expectations. According to federal funds futures trading data, the probability that the Federal Reserve will cut interest rates at its June meeting is currently 62.3%, down from about 70% last week. CME Group Fed Watch Tool.
Additionally, companies added 184,000 employees in March, according to ADP. The result beat Dow Jones’ forecast of 155,000 points and raised concerns among investors that interest rates may indeed remain higher for longer. The 10-year Treasury note once exceeded 4.4%, hitting a new high in 2024.
“There’s a lot of short-term volatility and jitters in the bond market,” said Larry Tantarelli, chief technical strategist at Blue Chip Daily Trend Report. “I don’t think there’s really any reason for the Fed to cut rates. The economy is so strong, we’re still not beat Inflation.”
At the same time, he believes the stock market is showing signs of a “bullish rotation,” or diversification of growth beyond the big tech companies that have driven the market higher since last fall.
“I wouldn’t be surprised to see leadership move into other industries besides tech. I think we may see a healthy rotation in some industries that should benefit from stronger economic data,” Tantarelli said. “Some of the stocks in the Big Seven may not outperform as they did last year.”
On the economic front, investors will focus on initial jobless claims for the week ending March 30. The U.S. trade deficit as of February will also be released Thursday morning. All eyes will be on Friday’s March non-farm payrolls data.
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