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Stock futures dip following two straight days of gains on Wall Street


Following two consecutive days on Wall Street, Tuesday’s overnight trading saw stock futures fall marginally.

The Dow Jones Industrial Average futures fell 55 points. S&P 500 futures and Nasdaq 100 futures both declined just 0.2%.

Investors ignored some indicators of an economic slowdown before a crucial inflation reading. The S&P 500 gained nearly 1%, rising for a second straight day. On Tuesday, the Dow 30 stocks advanced by more than 265 points while tech-heavy Nasdaq Composite rose 0.9%

Target reduced its profit guidance Tuesday. plans to get rid of excess inventory. This development raised concerns about the future of economic growth in an era of rising inflation. In the meantime, data from Atlanta Federal Reserve’s GDPNow tracker revealed a growth rate of just 0.9% for the second quarterThis is down from 1.3% the previous week.

“[The] market could continue to reflect concerns around financial conditions tightening and earnings growth slowing,” Lauren Goodwin, economist and portfolio strategist at New York Life Investments, said in a note.

Everyone will focus on Friday’s reading of the May consumer price index. Many believe the print will be crucial for the path of Fed policy and whether the central bank will keep raising rates in 50-basis-point increments.

As the Fed increased its rate of interest, it has fueled fears about recession. The stock market is experiencing a wild ride. The S&P 500 is off nearly 14% from its all-time high reached in January. Last month, the equity benchmark briefly fell into bearish territory.

Gargi Chaudhuri of BlackRock’s iShares investment strategy said, “The question here is whether the slower implied pace is due to the belief that Fed will achieve its policy goals” or because the economy is tipping into recession.” We believe that the US will not enter recession.

A slew of retailers and consumer companies will report quarterly earnings Wednesday, including Campbell Soup, Ollie’s Bargain Outlet and Five Below.