US pre-open: Futures little changed following heavy losses

By

Sharecast News | 16 Oct, 2024

Wall Street futures were little changed ahead of the bell on Wednesday following heavy losses in the previous session.

As of 1230 BST, Dow Jones futures were down 0.4%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.04% and 0.10% firmer, respectively.

The Dow closed 324.80 points lower on Tuesday, more than reversing gains recorded in the previous session as UnitedHealth stock weighed on the blue-chip index.

Trade Nation's David Morrison said: "Yesterday’s decline meant that the Dow and S&P pulled back from their record closes made on Monday. With little in the way of economic data releases, earnings will be in focus. But investors will also be mulling the outlook for rate cuts from the Federal Reserve. There is some concern that the Fed panicked last month when it reduced rates by a thumping 50 basis points.

"The feeling is that it overreacted to a clutch of disappointing economic data releases over the summer, particularly those related to the labour market. It turns out that the dip in non-farm payrolls was temporary, while the latest data releases show an economy which is pushing along very comfortably. Given this, and with expectations of a further 50 basis points worth of cuts before year-end, then the bullish argument for equities remains compelling. This should remain the case as long as there’s a quick and clean election result. But it does suggest that investors may have to dial back their rate cut expectations as we head into 2025."

On the macro front, US mortgage applications fell by 17% in the week ended 11 October, according to the Mortgage Bankers Association of America, extending the prior week's 5.1% drop. Applications to refinance a mortgage plummeted 26%, while those to purchase a home were down 7% on the week.

Still to come, September import and export price indexes will be published at 1330 BST.

In the corporate space, Morgan Stanley and Abbott Laboratories will both report earnings before the opening bell.

Reporting by Iain Gilbert at Sharecast.com

Last news