The futures of the US index changed little in the one-day trading on Wednesday after the Dow closed at a record high during normal trading hours.
Dow Jones Industrial Average futures traded 23 points. Futures on the S&P 500 were flat, while Nasdaq 100 was down 0.1%.
The move comes after the Dow jumped 425 points to close at a record high in a volatile session that at one point saw the 30-day moving average fall more than 110 points. The S&P 500 rose 1.1%, while the Nasdaq Composite gained 1%. Earlier in the session, the technology index was down 1.3%.
The rise in interest rates weighed on stocks at the beginning of the period, as the 10-year US yield to the Treasury Department reached 1.4% and reached its highest level since February 2020. Higher interest rates could push investors out. stocks and bonds. Higher rates could also hit the development-oriented technology sector, particularly hard.
“Our key assumption is that interest rates will continue to rise as growth and inflation expectations rise and, ultimately, the Federal Reserve normalizes,” said Ryan Detrick, LPL Financial’s head of market strategy. “We also believe that if interest rates move too high too fast, the Fed will intervene to ensure that rising interest rates do not become too restrictive and disrupt stock markets or the real economy,” he said.
Yields outperformed Federal Reserve Chairman Jerome Powell as he continued to underestimate the threat of inflation.
“It seems very clear to us that the movement of interest rates is due to growing optimism about economic growth and interest rates are finally ‘approaching’ the optimistic outlook for equity growth,” said David Lefkowitz, Head of Americas at UBS Global Asset Management. “Therefore, equity investors should not be overly concerned.”
On the data front, the initial numbers of unemployment claims will be released at 8:30 p.m. ET on Thursday, with economists surveyed by the Dow Jones expecting a printout of 845,000. Also at 8:30 a.m. ET, the US Department of Commerce will publish its second quarterly GDP estimate.
It will also be a busy day in profit with a number of companies going to publish quarterly results. Best Buy, Papa John’s and Domino’s Pizza are some of the names on the deck before the start bell. Following the closure of the market, Salesforce.com, Beyond Meat, Etsy and Caesars Entertainment are among the names mentioned.
Recently, public companies Airbnb and DoorDash are expected to report earnings on Thursday after the end of the campaign.
Register on CNBC PRO for exclusive information and analysis and live scheduling of working days from around the world.