Stock futures were flat Wednesday night as investors awaited economic data and speeches from the Federal Reserve
Futures tracking the Dow Jones Industrial Average rose 3 points, or 0.01%. S&P 500 futures and Nasdaq 100 futures were up 0.05% and 0.08% respectively.
The move comes after the stock has fallen in normal trading. The S&P 500 fell 1.56% on his worst day since December 15th. The Dow fell more than 613 points (1.81%). The tech-heavy Nasdaq Composite fell 1.24%, rising for the seventh straight day. Bank stocks such as JP Morgan, Bank of America and Wells Fargo fell, weighing on the broader market.
Disappointing retail sales and weaker-than-expected readings in the producer price index fueled fears of a recession and sent stocks lower. Yields on 10-year US Treasuries fell to their lowest level since September.
“The data continue to confirm a sharp decline in inflation,” said Jamie Cox, managing partner at Harris Financial Group. It’s about whether we can survive the rise.”
He added that while those who said inflation was temporary may now feel justified, the costs of getting there have not yet come out.
“At least there is a pullback in earnings and we will hold back stocks until that subsides,” he said.
On Thursday, investors will consider more economic data that could give further clues as to how likely the Fed is to hike rates at its next meeting. Housing starts, Philadelphia Federal Reserve manufacturing survey released in the morning.
Several central bank leaders, including Federal Reserve Vice Chairman Lael Brainard, will also speak throughout the day on the road ahead.
Investors will also look at major quarterly reports to see if an earnings slump is underway. Netflix, Procter & Gamble and Truist Financial were among the companies to report earnings on Thursday.