A trader works on the floor of the New York Stock Exchange (NYSE), June 27, 2022.
Brendan McDermid | Reuters
Stock futures were flat in overnight trading Tuesday after the major averages made a failed attempt at a bounce.
Futures tied to the Dow Jones Industrial Average edge 0.09% or 29 points, while the S&P 500 and the Nasdaq Composite rose marginally higher.
Pinterest shares jumped more than 4% after hours on news that CEO Ben Silbermann is stepping down.
During regular trading on Tuesday the Dow Jones Industrial Average dropped 491.27 points, or 1.56%, to 30,946.99, while the S&P 500 slid 2.01% to 3,821.55. The Nasdaq Composite fell 3% to 11,181.54.
Major averages rallied earlier in the session, with the Dow and S&P 500 up as much as 446 points and 1.17%, respectively. Markets gave up those gains following a disappointing consumer confidence index reading, which came in at 98.7 and missed Dow Jones’ estimate of 100. The moves followed slight losses in Monday’s session after the averages posted their best week for June last week.
As the second quarter comes to an end on Thursday, there are rising recession fears. Concern over a slowing economy and aggressive rate hikes consumed much of the first half of 2022 as investors continue to search for a bottom to a vicious market sell-off.
The S&P 500, which is down about 20% in 2022, is on pace for its worst first half of the year since 1970, when the index lost 21.01%. Meanwhile, on a quarterly basis, both the Dow and S&P 500 are on track for their worst performance since 2020. The Nasdaq is headed toward its worst three-month period since 2008.
All the major averages ended Tuesday’s session in the negative, except for energy, which rose 2.7% as oil prices rallied.
Just three Dow stocks ended the day higher, with the losses led by Nike. Shares of the sportswear company fell 7% after it warned that higher transportation costs and shipping delays would likely persist.
Beaten-up chip stocks Nvidia and Advanced Micro Devices ended the day more than 6% lower while big technology names including Netflix, Amazon and Meta Platforms closed down about 5% each.
“As long as the sell-off is orderly,” the Fed is “not concerned with the level of stock prices,” Guggenheim Partners’ Global CIO Scott Minerd told CNBC’s “Closing Bell: Overtime” on Tuesday. “The bottom line is until we see some amount of panic here or something that gets the central bankers concerned, they are just ‘hellbent’ to get inflation under control.”
Investors on Tuesday continued to keep a close eye on China, which eased Covid restrictions for inbound travelers and slashed quarantine time to seven days. Casino stocks Wynn Resorts and Las Vegas Sands moved higher on the news.
On Wednesday, investors are looking ahead to comments from Federal Reserve Chairman Jerome Powell at the European Central Bank forum. Earnings from Bed Bath & Beyond, General Mills and McCormick are also on deck.
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