Stock futures edged lower on Thursday after the major averages broke a two-day losing streak with gains in the prior session.
Futures linked to the Dow Jones Industrial Average slipped 37 points, or 0.1%, while S&P 500 futures declined by 0.2%, and Nasdaq-100 futures saw a 0.4% decrease.
In after-hours trading, Victoria’s Secret saw a sharp decline of 25% after reporting mixed quarterly results and issuing disappointing guidance.
On Wednesday, all major indexes closed higher, reversing losses from the previous two days. The S&P 500 climbed by 0.51%, and the Nasdaq Composite rose approximately 0.6%. The Dow Jones Industrial Average also saw a modest gain of nearly 76 points, or 0.2%.
Among the major S&P sectors, utilities led the gains. New York Community Bancorp initially experienced a significant decline of over 40% during Wednesday’s session but ended with a 7.5% gain after announcing a $1 billion capital raise. Meanwhile, Apple continued its downward trend for the sixth consecutive day, resulting in weekly losses of nearly 6%.
Investors closely monitored Federal Reserve Chair Jerome Powell’s testimony before Congress for insights into the future direction of interest rates. During Wednesday’s testimony before the House Financial Services Committee, Powell hinted that the policy rate may have reached its peak for the current tightening cycle but emphasized that the Fed is not yet prepared to start lowering rates.
“The market digested the reality that Powell was on board with respect to cutting rates this year. The question now becomes when, how often, and how many cuts,” commented Adam Sarhan, CEO of 50 Park Investments.
In addition to Powell’s testimony before the Senate Banking Committee on Thursday, investors awaited the latest data on jobless claims, trade balance, and consumer credit for January. This anticipation precedes the release of February’s highly anticipated jobs report scheduled for Friday morning.
Furthermore, earnings reports from Broadcom, Costco Wholesale, and Kroger were also on investors’ radar.
