Stock futures inch higher after major averages record worst day since June

Stock futures moved higher in overnight trading after stocks closed their worst day since June and Wall Street’s summer rally faded amid mounting concerns about rate hikes.

Futures linked to the Dow Jones Industrial Average were up 49 points, or 0.15%, while the S&P 500 and Nasdaq 100 were up 0.16% and 0.21%, respectively.

Zoom slumped in long-term trading after lowering its full-year forecast, while Palo Alto Networks rose after publishing strong quarterly results.

During Monday’s regular trading session, the Dow fell 643.13 points, or 1.91%, to 33,063.61 while the S&P fell 2.14% to 4,137.99, the worst day for both benchmarks since June 16. The Nasdaq Composite fell 2.55% to 12,381.57 to mark its worst close day since June 28.

Monday’s sell-off was broad-based, with all 11 S&P 500 sectors closing lower, led by declines in information technology and consumer discretionary. A slump in tech stocks weighed on the tech-heavy Nasdaq.

“The global growth story is currently in ruins,” said Ed Moya, senior market analyst at Oanda. “That really weighs on risk appetite right now because you can’t have the US staying attractive while the rest of the world crumbles.”

This sentiment will continue to put pressure on major technology and consumer goods stocks, he said. Moya, following other investors, expects another round of aggressive pushback from Fed Chair Jerome Powell when he speaks Friday at the central bank’s annual economic symposium in Jackson Hole.

Earnings season continues on Tuesday with results from Macy’s, Nordstrom and Dick’s Sporting Goods. New home sales in July will also be reported, along with the August manufacturing PMI and the Fed’s Richmond survey in August.

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