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People walk along Wall Street, near the New York Stock Exchange in New York.
Photo by ED JONES/AFP via Getty Images
Stock futures fell Wednesday, eating into a good chunk of the previous session’s gains, as investors went back to worrying that the Federal Reserve’s aggressive plans to tighten monetary policy could lead the U.S. into a recession.
Dow Jones Industrial Average
futures have fallen 320 points, or 1.1%, while
S&P 500
futures were down 1.3% and
Nasdaq Composite
futures have dropped 1.5%. Treasuries advanced, pushing the 10-year yield down to 3.213% from 3.304%.
Stocks posted strong gains Tuesday, with the Dow advancing 643 points, or 2.2%, and the S&P 500 jumping 2.5%. The Nasdaq also rose 2.5%.
Federal Reserve Chairman Jerome Powell will appear before the Senate Committee on Banking, Housing, and Urban Affairs just as the markets open Wednesday. The Fed has been raising interest rates in a move to cool historically high inflation, which has led to fears on Wall Street that the central bank’s effort will lead the U.S. to an economic downturn. The S&P 500, despite the gains Tuesday, has declined 21% this year.
“The bounce in U.S. stocks after Monday’s holiday shows signs of being short-lived given that there was no major data out to support an ongoing buying spree,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown. “U.S. futures point to a lower open for Wall Street, an indication that pessimism is seeping back into investor sentiment about the Federal Reserve’s ability to cool down inflation without inducing a cold…
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