Stock futures edged lower in overnight trading following a positive session on Wall Street, with major averages snapping a three-day losing streak.
Futures tied to the Dow Jones Industrial Average slipped 47 points, or 0.1%, while S&P 500 futures and Nasdaq-100 futures also ticked lower by 0.1% and 0.2%, respectively.
One notable mover in extended trading was Victoria’s Secret, which plunged 25% after reporting mixed quarterly results and disappointing guidance.
Despite the overnight dip in futures, all major averages closed higher on Wednesday, with the S&P 500 rising 0.51%, the Nasdaq Composite adding about 0.6%, and the Dow Jones Industrial Average gaining nearly 76 points, or 0.2%.
Utilities led the way among the S&P sectors, with New York Community Bancorp also making headlines after initially tumbling more than 40% before finishing the day with a 7.5% gain following a $1 billion capital raise announcement.
Apple, however, continued its losing streak, falling for a sixth consecutive day and bringing its weekly losses to nearly 6%.
Investors are closely monitoring Federal Reserve Chair Jerome Powell’s testimony on Capitol Hill for insights on the future of interest rate cuts. Powell indicated that the policy rate is at its peak for the current tightening cycle but emphasized that the Fed is not yet ready to begin reducing rates.
“The market digested the reality that Powell was on board with respect to cutting rates this year. The question now becomes when, how often, and how many cuts,” said Adam Sarhan, CEO of 50 Park Investments.
Looking ahead, investors are awaiting the latest jobless claims data, trade balance, and consumer credit data for January, as well as the highly anticipated February jobs report scheduled for Friday morning. Earnings reports from Broadcom, Costco Wholesale, and Kroger are also on the horizon.
Overall, the market remains cautiously optimistic as traders navigate through a mix of earnings reports, economic data, and Fed commentary to gauge the direction of the stock market in the coming days.
