US stock futures fell on Thursday, as a massive rally to start the month faded, with rates moving higher again.
Dow Jones Industrial Average futures fell 199 points, or 0.7%. S&P 500 futures fell 0.8% and Nasdaq 100 futures fell 0.8%.
The benchmark 10-year rate rose more than 1 basis point to 3.773%. The 2-year yield, more sensitive to changes in monetary policy, rose 2 basis points to 4.14%.
Wall Street started the week on a high note, with the S&P 500 starring in its biggest two-day rally since 2020. Stocks struggled to maintain their winning streak on Wednesday, but ultimately fell short. The Dow closed about 42 points lower, or 0.14%. The S&P 500 and Nasdaq Composite fell 0.20% and 0.25%, respectively.
“Few are convinced the recent move is more than a bear market rally, with skepticism about durability,” said Mark Hackett, head of investment research at Nationwide. “Confidence remains weak, from CEOs, small businesses, consumers and investors. Universal pessimism is bullish from a contrarian perspective, although the timing of the pendulum swing is difficult to predict.”
Investors continue to monitor economic data to see if inflation is cooling or if the Federal Reserve’s rate hikes are pushing the US closer to a recession.
ADP data showed the labor market remained strong among private firms in September, when firms added 208,000 jobs. That beat the Dow Jones estimate of 200,000 jobs. On Friday, the Bureau of Labor Statistics’ September employment report will be released, providing the central bank and investors with another piece of data.
Some companies also report earnings. On Thursday, Constellation Brands will announce its results before the opening bell and Levi Strauss will report after the market closes.