Stock futures were flat on Wednesday night as investors waited for economic data and speeches from Federal Reserve executives
Futures linked to the Dow Jones Industrial Average fell 9 points, or 0.03%. S&P 500 futures and Nasdaq 100 futures were up 0.03% and 0.05%, respectively.
The moves come after shares fell in regular trading. The S&P 500 fell 1.56% on its worst day since Dec. 15. The Dow lost more than 613 points, or 1.81%. The tech-heavy Nasdaq Composite fell 1.24% to post seven straight days of gains. Banking stocks including JPMorgan, Bank of America and Wells Fargo slid, weighing on the broader market.
Disappointing retail sales and a weaker-than-expected PPI fueled recession fears and sent stocks lower. The 10-year US Treasury yield fell to its lowest level since September.
“The data continues to confirm a strong decline in inflation,” said Jamie Cox, managing partner of Harris Financial Group. “The question now is whether the economy can survive the sharp rise in interest rates to fight inflation.”
He added that while those who said inflation was temporary may now feel vindicated, the cost of getting there has yet to be paid.
“At the very least there will be an earnings recession and that will keep stocks in check until that plays out,” he said.
On Thursday, investors will consider more economic data that could provide further clues as to how much the Fed may hike rates at its upcoming meeting. Initial jobless claims, housing starts and the Philadelphia Federal Reserve’s manufacturing survey will be released in the morning.
Several central bank leaders, including Fed Vice Chair Lael Brainard, will also discuss the way forward later in the day.
Investors will also be watching key earnings reports to see if an earnings recession is brewing. Netflix, Procter & Gamble and Truist Financial are among the companies to report earnings on Thursday.