US stock futures were little changed on Thursday as a massive rally earlier in the month eased and interest rates ticked higher again.
Dow Jones Industrial Average futures fell 19 points, or 0.1%. S&P 500 futures were flat and Nasdaq 100 futures fell 0.2%.
The benchmark 10-year rate rose more than 1 basis point to 3.773%. The 2-year yield, which is more sensitive to monetary policy changes, rose 2 basis points to 4.14%.
Wall Street started the week on a high as the S&P 500 staged its biggest two-day rally since 2020. Stocks struggled to continue Wednesday’s winning streak but ultimately lagged. The Dow closed about 42 points lower, or 0.14%. The S&P 500 and Nasdaq Composite fell 0.20% and 0.25%, respectively.
“Few are convinced the recent move is anything more than a bear market rally, with skepticism about its durability,” said Mark Hackett, head of investment research at Nationwide. “Confidence remains weak, ranging from CEOs, small businesses, consumers and investors. Universal pessimism is optimistic from a contrarian perspective, although the timing of the swing of the pendulum is difficult to predict.”
Investors continue to watch economic data to see if inflation is cooling or if the Federal Reserve’s rate hikes are pushing the US closer to a recession.
Data from ADP showed that the private sector job market remained strong in September as companies added 208,000 jobs. That beat Dow Jones’ estimate of 200,000 jobs. The Bureau of Labor Statistics’ September jobs report will be released on Friday, providing more data for the central bank and investors.
Some companies also report profits. On Thursday, Constellation Brands will report its results before the opening bell and Levi Strauss will report after the market close.