Market Snapshot: Dow futures fall more than 100 points after biggest 1-day gain since March, with Fed minutes ahead

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U.S. stocks early Wednesday looked poised to pull back firmly from an upsurge in the previous session that sent major indexes to their biggest gain since March, as investors continue to digest global political developments and react to a spate of corporate earnings.

Minutes from the Federal Reserve’s September meeting, at which they raised interest rates, were expected later Wednesday.

How are benchmarks performing?

Futures for the Dow Jones Industrial Average
YMZ8, -0.36%
 are down 112 points, or 0.4%, at 25,670, those for the S&P 500 index
ESZ8, -0.31%
 were trading 10.55 points lower at 2,807.75, a decline of 0.4%, while Nasdaq-100 futures slipped 34 points, or 0.5%, at 7,320.

On Tuesday, the Dow
YMZ8, -0.36%
jumped 547.87 points, or 2.2%, to 25,798.42. The S&P 500
SPX, +2.15%
 gained 59.13 points, or 2.2%, to 2,809.92 with tech and health care among the strongest performers in a session where all 11 sectors finished higher. The Nasdaq Composite Index
COMP, +2.89%
 climbed 214.75 points, or 2.9%, to 7,645.49. It was the biggest single-day advance for all three indexes since March 26.

What’s driving the market?

Thus far stock gains have been supported by stronger-than-expected corporate results and healthy economic data. However, concerns about rapidly rising interest rates may return to the fore with the rate-setting Federal Reserve scheduled to release an account of minutes from its Sept. 25-26 gathering, which delivered a third rate increase in 2018 as expected.

Minutes aren’t ordinarily a source of volatility, however, the outsize focus on Treasury rates — notably a rise in the yield on the 10-year Treasury note
TMUBMUSD10Y, +0.12%
 to a seven-year high last week — that can raise corporate and individual borrowing costs may make a more detailed account of last month’s policy convention slightly more intriguing.

Fed minutes are scheduled to be released at 2 p.m. Eastern Time.

Meanwhile, the market continues to closely watch negotiations between the European Union and Britain as it attempts to exit from the trade bloc with a trade agreement in hand. The potential for a clash between Italy and the European Union over Rome’s budget plans is also in the spotlight.

Which data were in focus?

Reading for housing starts and building permits for September are due at 8:30 a.m.

What were analysts saying?

“Wall Street surged on Tuesday, reclaiming some lost ground as solid earnings results from major firms amplified speculation for another quarter of spectacular corporate profits. Robust U.S. data showing that job openings hit another record high in August likely aided the moves,” wrote Andreas Georgiou, investment analyst at XM, in a Wednesday research note.

Which stocks were in focus?

Shares of Netflix Inc.
NFLX, +3.98%
 were surging in premarket action a day after it reported better-than-expected quarterly results late-Tuesday.

How did other markets trade?

Asian stocks ended higher, with Japan’s Nikkei
NIK, +1.29%
 jumped 1.3%, extending Tuesday’s rally in the U.S., while European indexes were trading slightly lower as Italian and British political uncertainty buffeted stock benchmarks.

Crude-oil prices
CLX8, -0.50%
fell, while gold prices
GCZ8, -0.06%
 were virtually unchanged as the U.S. dollar index
DXY, +0.09%
edged slightly higher early Wednesday.

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