U.S. stock futures were largely flat Thursday morning after falling during the regular session and breaking a sharp two-day rally.
Dow Jones Industrial Average futures were down 14 points, or 0.05%. S&P 500 futures were little changed, while Nasdaq 100 futures rose 0.11%.
Stocks struggled to hold on to gains on Wednesday, but ultimately failed to materialize. The Dow closed down about 42 points, or 0.14%, rebounding from a session low of nearly 430 points. The S&P 500 and Nasdaq Composite lost 0.20% and 0.25%, respectively.
Rising yields on Wednesday added to the pressure on stocks. The 10-year Treasury note rate rose to 3.7% from 3.6% a day earlier.
“Few believe the recent move is more than a bear market rally, and are skeptical about durability,” said Mark Hackett, director of investment research at Nationwide. “From CEOs, small businesses, consumers and investors Confidence among investors remains weak. From a contrarian perspective, the prevailing pessimism is bullish, although the timing of the pendulum swing is difficult to predict.”
Investors continued to focus on economic data to see if inflation was cooling or if the Federal Reserve’s rate hikes were pushing the U.S. into recession.
The private sector labor market remained strong in September, with businesses adding 208,000 jobs, ADP data showed. That exceeds the Dow Jones estimate of 200,000 jobs. On Friday, the U.S. Bureau of Labor Statistics is to release its September jobs report, providing another piece of data for the central bank and investors.
Some companies are also reporting earnings. On Thursday, Constellation Brands will report results before the market opens and Levi Strauss will report after the market close.