Stock futures fall after two days of sharp gains on Wall Street

Markets aren't out of the woods yet, says Citi Global Wealth's bitterness

U.S. stock futures fell early Wednesday after the S&P 500 posted its biggest two-day gain in about two years.

Dow Jones Industrial Average futures fell 150 points, or 0.49%. S&P 500 and Nasdaq 100 futures fell 0.53% and 0.55%, respectively.

During regular trading hours on Tuesday, the Dow rose about 825 points, or 2.8%. The S&P 500 rose nearly 3.1% and the Nasdaq Composite gained 3.3%.

The two-day gain came against the backdrop of a pullback in bond yields, which briefly fell below 3.6% after briefly topping 4% last week.

Meanwhile, recent weak job opening data has some investors wondering whether the Fed will slow the pace of interest rate hikes.

Market participants wondered whether these signs meant the market finally bottomed in prices after a sharp drop in the previous quarter.

“I don’t think you need 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, going into early next year, there is still room for a rebound.”

Traders expect a slew of economic reports on Wednesday. Projected weekly mortgage application data. The September ADP Private Employment Report will be released at 8:15AM ET. The latest international trade reading will be released at 8:30AM ET, while the ISM Services Index is scheduled for 10AM ET.

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