U.S. stock futures fell on Wednesday, putting Wall Street on track to give back some of its sharp gains from the last two sessions.
Dow Jones Industrial Average futures declined 332 points, or 1.1%. S&P 500 and Nasdaq 100 futures dipped 1.2% and 1.4%, respectively.
Treasury yields rebounded Wednesday, weighing on stocks. The 10-year rate traded 10 basis points higher at 3.717% after briefly dipping below 3.6% in the previous session.
Payroll services firm ADP issued its jobs report, which showed the addition of 208,000 jobs in September, which is better than expected by Dow Jones estimates. Traders are still looking ahead to Friday’s release of the nonfarm payrolls report.
On Tuesday the Dow jumped about 825 points, or 2.8%. The S&P 500 gained nearly 3.1%, while the Nasdaq Composite advanced 3.3%. Those gains, which come on the back of falling bond yields, led to the strongest two-day stretch for the S&P 500 since 2020.
Meanwhile, a weakening in the most recent job openings data had some investors considering whether the Federal Reserve will slow the pace of interest rate hikes.
Market participants wondered whether those signs could mean markets have finally priced in a bottom after the sharp declines in the prior quarter.
“I don’t think you have to worry about a recession until the second half of ’23,” Stifel chief equity strategist Barry Bannister said Tuesday on CNBC’s “Closing Bell: Overtime.” “So there is room for a rally as you go into the early part of next year.”