US Stock Futures Point to Rebound Ahead of More Economic Data

US equity futures rose on Wednesday, pointing to a possible rally after heavy losses on Wall Street, as a subdued inflation reading gave way to continued concerns about global growth.

Investors will be waiting for fresh data from the US, while a batch of updates from China shows that country’s own pandemic struggles.

How are stock futures traded?
  • Dow Jones Industrial Average Futures
    YM00,
    + 0.21%

    increased 65 points, or 0.2%, to 34,529

  • S&P 500 Futures
    ES00,
    + 0.26%

    increased 10 points, or 0.2%, to 4,445

  • Nasdaq-100 Futures
    NQ00,
    + 0.31%

    gained 46 points, or 0.3%, to 15,425

Upon Tuesday, Dow industrialists
DJIA,
-0.84%

fell 292.06 points, or 0.8%, to end at 34,577.57, the S&P 500 index
SPX,
-0.57%

fell 25.68 points, or 0.6%, to 4,443.05 and the Nasdaq Composite
COMP,
-0.45%

It fell 67.82 points, or 0.5%, to 15,037.76.

What drives the market?

Investors remain concerned that the aftermath of the pandemic will spread to global economies, especially as the delta variant has led to an increase in cases in the US and elsewhere. Markets have been trying to regroup after a series of losses that came to a brief halt on Monday.

Read: Buy early and expect to pay more: supply chain problems could be a hindrance to optimistic holiday shopping forecasts

“I suspect the market is likely to rebound as it tries to stabilize. From a short-term perspective, the market is somewhat oversold, so we could have a rebound. However, the cautious attitude will likely prevail as the decline has been accompanied by low volume, “said Peter Cardillo, chief market economist at Spartan Capital Securities, in emailed comments.

More data is expected for Wednesday, starting with August import prices and the New York State Empire Factory Index for September, both at 8:30 am ET, and industrial production and capacity utilization. August 9:15 am ET.

The futures bounce occurred despite a lot of pessimistic pace Data from China, where August retail sales grew a disappointing 2.5% year-on-year, from 8.5% growth in July. August industrial production and investment in fixed assets also did not meet expectations.

What companies are in focus?
How are other assets traded?
  • The yield of the 10-year Treasury note
    TMUBMUSD10Y,
    1,277%

    it remained stable at 1.285%. Yields and debt prices move in opposite directions.

  • The ICE US Dollar Index
    DXY,
    -0.17%
    ,
    Measuring the currency against a basket of six big rivals, it fell 0.2% to 92.45.

  • Oil futures were higher, with the US benchmarking.
    CL00,
    + 1.38%

    rising $ 1.19 to $ 71.30 a barrel. October natural gas
    NGV21,
    + 3.67%

    it was up 3.5% to $ 5.44 per million British thermal units.

  • In European equities, the Stoxx Europe 600 index
    SXXP,
    -0.21%

    fell 0.1%, while London’s FTSE 100 index
    UKX,
    + 0.05%

    it was flat.

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