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Futures fell after two consecutive days of gains on Wall Street


Share futures fell slightly in overnight trading Tuesday after two consecutive days of gains on Wall Street.

Dow Jones Industrial Average futures fell 55 points. Futures on the S&P 500 and Nasdaq 100 were both down 0.2%.

Investors dismissed some signs of a recession ahead of the key inflation results. The S&P 500 index rose nearly 1%, gaining for the second day in a row. The 30-stock Dow gained more than 260 points on Tuesday, while the tech-heavy Nasdaq Composite added 0.9 percent.

Target slashed its profit guidance on Tuesday, saying it have a plan to eliminate excess inventory. The development highlights the risks to economic growth amid rising inflation. Meanwhile, the Atlanta Federal Reserve’s GDPNow tracker shows growth rate of only 0.9% in the second quarterdown from 1.3% last week.

“[The] Lauren Goodwin, economist and portfolio strategist at New York Life Investments, said in a note the market is likely to continue to reflect concerns around tightening financial conditions and earnings growth. slow entry.

All eyes will be on Friday’s consumer price index reading for May. Many believe the print will be crucial to the Fed’s policy line and whether the central bank continues to raise interest rates with a 50 basis point increase.

The stock market had a long slide as the Fed raised interest rates aggressively stoking recession fears. The S&P 500 is down nearly 14% from its all-time high hit in January. The equity benchmark plunged rapidly into bear market territory last month.

“The question is whether this implied slower pace of tightening is due to confidence that the Fed will achieve its policy goals,” said Gargi Chaudhuri, head of investment strategy at iShares at BlackRock. or because the economy will fall into recession. “We believe the US will avoid a recession.”

A wide range of retailers and consumer companies will report quarterly earnings on Wednesday, including Campbell Soup, Ollie’s Bargain Outlet and Five Below.



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