Stock Market Today: Dow futures dip as benchmark Treasury yields hold above 4%
How are stock-index futures trading:
S&P 500 futures are down 0.1%.
Dow Jones Industrial Average futures are dipping 0.1%.
Nasdaq 100 futures are slipping 0.2%.
On Tuesday, the Dow Jones Industrial Average rose 126 points, or 0.3%, to 42,080, the S&P 500 increased 55 points, or 0.97%, to 5,751, and the Nasdaq Composite gained 259 points, or 1.45%, to 18,183.
Trading is cautious early Wednesday, with stock-index futures a fraction lower.
However, the S&P 500 sits just 0.2% shy of its record closing level as investors remain optimistic that the U.S. economy is in decent health and the upcoming third-quarter earnings season – which kicks off with some big banks on Friday – will show current market valuations can be justified.
Sentiment is also supported by an understanding that the Federal Reserve is minded to continue reducing borrowing costs. The pace of monetary easing is disputed, however, so investors will be looking for any new clues in that regard when the central bank releases at 2 p.m. Eastern the minutes of its previous monetary policy meeting.
“The Fed’s recent signal that inflation is cooling enough to keep the rate-cut path intact boosted market confidence,” says Stephen Innes, managing partner at SPI Asset management.
“The combination of easing inflation fears and steady growth gave the market the push it needed,” Innes added.