Stock futures were flat overnight Wednesday, after the Dow snapped a five-day winning streak and the recent rally faded.
Futures contracts linked to the Dow Jones Industrial Average added 18 points. S&P 500 futures and Nasdaq 100 futures were little changed.
In regular trading, the Dow fell roughly 172 points, or 0.5%. The S&P 500 fell 0.7% for its first negative session in four. The Nasdaq Composite was the relative underperformer, down 1.25%. The technology index and the S&P 500 are now on track for a four-week winning streak.
Minutes from the Federal Reserve’s latest meeting boosted Wednesday’s market action. The central bank remains committed to fighting inflation, but indicated it could adjust the pace of its tightening depending on market conditions.
Investors had hoped the Fed could slow the pace of rate hikes after July’s consumer price index reading showed inflation cooled slightly. But not everyone is convinced.
“We’re in the field where the Fed won’t turn,” Scott Wren, senior global market strategist at Wells Fargo Investment Institute, told CNBC’s “Closing Bell.”
“The minutes didn’t change our mind at all. We think a 75 basis point increase is likely in September, and we’ll see more hikes later in the year…we think the market is a little high. right here.” , added.
The latest batch of earnings reports did not help traders’ sentiment during the session. Target missed estimates for the quarter, with Lowe’s results mixed.
More retail earnings are in store for Thursday, with Kohl’s, Tapestry, Estee Lauder and Ross Stores set to report. Applied Materials will also publish its quarterly update.
Some key economic data will also be released on Thursday, including weekly jobless claims and existing home sales.