U.S. stock futures saw a slight upward movement on Wednesday morning, recovering from the substantial loss the Dow Jones Industrial Average experienced in its worst performance since March 2023.
Dow futures climbed by 43 points, marking a modest increase of 0.11%. Additionally, futures for the S&P 500 ascended by 0.2%, while those for the Nasdaq 100 saw a rise of 0.32%.
This uptick occurred in the wake of after-hours trading activity that saw shares of Lyft surge over 16%, following the company’s announcement of its fourth quarter earnings, which exceeded analysts’ expectations. Conversely, Airbnb shares experienced a decline of more than 4%, despite the company surpassing revenue forecasts for its most recent quarter.
The previous session on Tuesday witnessed significant market movements, with the 30-stock Dow dropping by 1.35% – its most considerable decrease since March 2023. The S&P 500 and the Nasdaq Composite weren’t spared either, plummeting by 1.37% and 1.8%, respectively. Market sentiments were largely affected by an unexpected inflation report, which heightened apprehensions about the Federal Reserve’s potential hesitance in reducing interest rates anytime soon.
The consumer price index revealed a 0.3% increase in January on a monthly basis, with a 3.1% year-on-year rise, surpassing forecasts by Dow Jones, which anticipated a 0.2% monthly growth and a 2.9% annual climb.
Despite this, Terry Sandven, U.S. Bank Wealth Management’s chief equity strategist, remains optimistic. He suggests that while the recent CPI figures might delay Federal Reserve’s rate cuts to the latter part of 2024—countering the initial anticipation of reductions by March—the prospects for a market rally remain intact.
