U.S. stock futures are trading higher on Wednesday as Wall Street attempts to recover from the previous session’s steep losses. Dow Jones Industrial Average futures rose by 105 points, or 0.3%, while S&P 500 and Nasdaq-100 futures climbed 0.4% and 0.4% respectively. However, shares of Costco fell by 2% in premarket trading despite the company reporting growth in comparable sales and beating analysts’ expectations.
The market experienced significant losses on Tuesday, with the Dow falling by 388 points, the S&P 500 declining by 1.47%, and the Nasdaq Composite sliding by 1.57%. These losses were attributed to disappointing data on new home sales and consumer confidence, causing concerns about inflation and higher borrowing costs. However, U.S. Bank Asset Management senior investment strategist Rob Haworth noted that accumulated consumer savings, a strong labor market, and solid wage growth continue to provide some support.
September is historically known for being a seasonally weak month for the market, and the current performance is in line with this trend. The S&P 500 is down 5.2% in September, while the Dow is down 3.2%, and the Nasdaq has experienced the steepest decline at nearly 7%. Chief Investment Officer Robert Schein of Blanke Schein Wealth Management expects volatility to continue into October until the start of earnings season, which could potentially act as a catalyst to end the market correction. Economic reports for the day include August’s durable goods orders, with economists anticipating a decline of 0.5%. Paychex and Micron Technology are also scheduled to release their earnings reports.