Stock futures rose early Tuesday morning after stocks ended their worst day since June and Wall Street’s summer rally faded amid growing concerns about rising rates.
Futures linked to the Dow Jones Industrial Average rose 25 points, or 0.08%, while S&P 500 and Nasdaq 100 futures were up slightly by 0.05% and 0.12%, respectively.
Zoom fell in extended trading after it cut its full-year forecast, while Palo Alto Networks rose after posting strong quarterly results.
In regular trading on Monday, the Dow fell 643.13 points, or 1.91%, to 33,063.61, while the S&P fell 2.14% to 4,137.99, its worst day for both benchmarks since June 16. day since June 28.
Monday’s sell-off was broad-based, with all 11 S&P 500 sectors closing lower, led by declines in information technology and consumer discretionary stocks. A drop in tech stocks sent the tech-heavy Nasdaq down.
“The global growth story is in tatters right now,” said Ed Moya, senior market analyst at Oanda. “That’s what’s really weighing on risk appetite right now because you can’t keep the United States attractive while the rest of the world is collapsing.”
That sentiment will continue to pressure large tech and consumer discretionary stocks, he said. Moya, echoing other investors, expects another round of blunt rebuffs from Fed Chairman Jerome Powell when he speaks at the central bank’s annual Jackson Hole economic symposium on Friday.
Earnings season continues Tuesday with results from Macy’s, Nordstrom and Dick’s Sporting Goods. New home sales will also be reported in July, along with the August manufacturing PMI and the August Richmond Fed survey.