Stock futures about flat following 400-point rally in the Dow

Stock futures were about flat Thursday morning after the major averages snapped a two-day slide, helped by robust earnings and stronger economic reports for June and July that led investors to look past the possibility of a recession.

Futures tied to the Dow Jones Industrial Average fell 9 points or 0.03%. S&P 500 futures slipped by 0.08% and Nasdaq 100 futures lost 0.18%.

In regular hours trading, all three major averages ended the day on higher. The Dow advanced by more than 400 points, while the S&P 500 hit its highest level since June. The tech-heavy Nasdaq Composite jumped about 2.5%.

Investors got the green light to jump back into beaten up tech names after a surprise rebound in July services PMI and comments from St. Louis Federal Reserve President James Bullard. Bullard said he does not think the US is in a recessionciting job gains and low unemployment.

“US-China tensions remain high and the Fed continues to talk tough on inflation, but earnings were enough to catalyze the next leg of the rebound,” according to Barclays. “A wave of Tech quarters came in better than expected, and the [technology, media and entertainment, and telecommunications] complex led the S&P 500 to a new QTD high.”

Stock picks and investing trends from CNBC Pro:

Leave a Reply

Your email address will not be published. Required fields are marked *