Stock futures fall as Wall Street rally looks to pause after Dow’s 5-day winning streak
Stock futures were lower on Wednesday as a rally that has propelled stock prices higher since mid-June looked set for a respite.
Futures contracts linked to the Dow Jones Industrial Average fell 185 points, or 0.54%. S&P 500 and Nasdaq 100 futures fell 0.73% and 0.81% respectively.
The Dow notched its fifth straight day of gains on Tuesday. Meanwhile, the S&P 500 is enjoying its fifth consecutive positive week as investors continue to assess the strength of this rally. The broad stock index is now up 18% from its June lows.
“This market has been so resilient,” Brynn Talkington, managing partner of Requisite Capital Management, said on CNBC’s “Closing Bell: Overtime.” “As we approach the end of earnings, earnings will beat by a median of about 7%.”
Although giving it “a lot of pause” in this market, the Federal Reserve and its plans to continue to raise rates and reduce the size of its balance sheet. “Earnings have always been strong, but … the Fed’s balance sheet hasn’t budged,” she said.
On Wednesday, traders were eagerly awaiting the release of US retail sales data later in the morning. In the afternoon, the Federal Reserve should publish the minutes of its last meeting.
Additionally, Wall Street plunged in corporate earnings in the retail sector. Walmart and Home Depot reported Tuesday, while Lowe’s and Target released earnings Wednesday morning.