U.S. stock futures fell on Wednesday after results from tech behemoths Microsoft and Alphabet disappointed investors.
How are stock-index futures trading
S&P 500 futures
dipped 23 points, or 0.6% to 3847
Dow Jones Industrial Average futures
rose 2 points, or 0% to 31879
Nasdaq 100 futures
eased 164 points, or 1.4% to 11549
On Tuesday, the Dow Jones Industrial Average
rose 337 points, or 1.07%, to 31837, the S&P 500
increased 62 points, or 1.63%, to 3859, and the Nasdaq Composite
gained 247 points, or 2.25%, to 11199. The S&P 500 is up 7.6% so far in October, but remains down 19% for the year-to-date.
What’s driving markets
Stocks were on course to snap a three-day winning streak after poorly-received earnings reports from Microsoft
and Texas Instruments
poured cold water on bulls’ new-found optimism. All three shares were trading at least 6% lower in premarket trading.
The S&P 500 has jumped 5.3% since Thursday’s close as a generally positive third quarter earnings season, and hopes the Federal Reserve may be less aggressive in hiking rates after some weak economic data, sparked another burst of risk appetite.
“The latest data was good for inflation expectations, and good for recession fears, which both temper the Fed hawks a week before the Fed is preparing to announce another 75 basis point hike in its rates.,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Ian Williams, analyst at Peel Hunt, agreed. “Most of the earnings news released in the past 24 hours provided reassurance in the face of the economic downturn, and a pullback in yields also helped equity market sentiment yesterday,” he said.
Disappointing Alphabet and Microsoft numbers hit after the close Tuesday, alongside equally gloomy results from Texas Instrument.
“With its chips used across a variety of goods, the [T.I.] CEO’s comments about weakness in both personal electronics and industrial sectors is telling about demand in the broader economy,” said analysts at Deutsche Bank
U.S. economic updates set for release on Wednesday include trade in goods for September, due at 8:30 a.m., and September new home sales, released at 10 a.m. All times Eastern.