A trader works on the floor of the New York Stock Exchange on Aug. 4, 2022.
Source: NYSE
Stock futures were little changed in overnight trading Wednesday following a four-day losing streak for the S&P 500 as tech names dragged the broader market lower.
Futures on the Dow Jones Industrial Average were flat. S&P 500 futures and Nasdaq 100 futures also traded near the flatline.
Big Tech names and chipmakers led losses again Wednesday as investors continued to rotate out of high-flying stocks. Amazon, Apple and Alphabet all registered losses of more than 1%. Broadcom dipped 1.3%, while Intel dropped 7%. At one point in the session, Nvidia fell more than 3%, but the stock closed just 0.1% lower.
“There just hasn’t been much conviction behind the recent bout of tech selling, and most people assume it will be over relatively soon,” Adam Crisafulli, founder of Vital Knowledge, said in a note. “This mindset suggests a dangerous degree of complacency, and it means the ‘pain trade’ will be for the tech underperformance to continue.”
Investors are eager to hear from Federal Reserve Chair Jerome Powell on Friday at the central bank’s annual economic symposium in Jackson Hole, Wyo., where he could offer insights into the path of interest rates.
Fed funds futures are pricing in a more than 80% likelihood of the central bank cutting interest rates at its next policy gathering in September, according to CME’s FedWatch tool.
Minutes from Fed’s July meeting showed policymakers are worried about the state of the labor market and inflation, though most agreed that it was too soon to lower interest rates. Fed Governors Christopher Waller and Michelle Bowman dissented against holding rates steady, marking the first time two voting Fed officials have done so since 1993.
“The Fed is worried about inflation accelerating as companies pass tariffs on to consumers,” said David Russell, global head of market strategy at TradeStation. “The minutes are consistent with Powell’s hawkish comments last meeting. The bulls might get some cold water splashed in their faces at Jackson Hole.”
On Thursday, traders will watch for Walmart earnings before the bell, followed by results from Workday in the afternoon. On the economic front, weekly jobless claims and existing home sales data are also due.