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
are down 112 points, or 0.4%, at 25,670, those for the S&P 500 index
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
jumped 547.87 points, or 2.2%, to 25,798.42. The S&P 500
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
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
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?
How did other markets trade?
Asian stocks ended higher, with Japan’s Nikkei
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.
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