Stock market futures were slightly lower early Thursday morning after the Dow broke a five-day winning streak and the recent rally faded.
Futures linked to the Dow Jones Industrial Average were down 69 points. S&P 500 futures fell 0.29%, while Nasdaq 100 futures fell 0.4%.
During regular trading, the Dow fell about 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 tech-heavy index and the S&P 500 are both now on track to post a four-week winning streak.
Minutes from the Federal Reserve’s most recent meeting drove market action on Wednesday. The central bank remains committed to fighting inflation but has indicated it may adjust its pace of tightening depending on market conditions.
Investors have been hoping that the Fed may slow the pace of its rate hikes after July’s CPI showed a slight slowdown in inflation. But not everyone is convinced.
“We’re in the camp that the Fed isn’t going to pivot,” Scott Wren, senior global market strategist at the Wells Fargo Investment Institute, said on CNBC’s Closing Bell.
“The protocol hasn’t made us change our minds at all. We think a 75 basis point hike in September is likely and we’ll see more hikes towards the end of the year…we think the market is a little high right here,” he added.
The recent earnings report did not help traders sentiment during the session. Target’s quarter missed estimates, with Lowe’s results being mixed.
More retail gains are on deck for Thursday, with Kohl’s, Tapestry, Estee Lauder and Ross stores all set to report. Applied Materials will also release its quarterly update.
Some key economic data will also be released on Thursday, including weekly jobless claims and existing home sales.