U.S. stock futures traded higher on Wednesday, as Wall Street attempted to recover from significant losses experienced in the previous session. Dow Jones Industrial Average futures rose by 105 points, or 0.3%, while S&P 500 futures and Nasdaq-100 futures also saw gains of 0.4%. However, Costco shares dropped 2% in premarket trading despite reporting better-than-expected earnings for its fiscal fourth quarter. The market’s recent downturn can be attributed to weaker-than-expected data on new home sales and consumer confidence, with concerns about inflation and higher borrowing costs also impacting housing market activities.
The volatile September market has seen the S&P 500 decline by 5.2%, the Dow drop by 3.2%, and the Nasdaq falter by almost 7%. Chief Investment Officer Robert Schein from Blanke Schein Wealth Management anticipates that this instability will persist into October before potentially turning around during earnings season. Schein believes that better-than-expected earnings results could serve as the catalyst needed to end the market correction. Economic reports set to be released on Wednesday include durable goods orders for August, which are expected to have declined by 0.5% according to economists.
Furthermore, Paychex will release its earnings report before the market opens, and Micron Technology’s quarterly release is highly anticipated after the market closes. Overall, while the stock market tries to make a comeback, the impact of recent data and concerns about inflation and borrowing costs continue to influence investor sentiment.
