U.S. stock futures fell on Wednesday morning after the S&P 500 posted its best two-day gain in roughly two years.
Dow Jones Industrial Average futures declined by 150 points, or 0.49%. S&P 500 and Nasdaq 100 futures dipped 0.53% and 0.55%, respectively.
During the regular session Tuesday, the Dow jumped about 825 points, or 2.8%. The S&P 500 gained nearly 3.1%, while the Nasdaq Composite advanced 3.3%.
The two straight days of gains came on the back of a pullback in bond yields, with the 10-year Treasury yield falling below 3.6% at one point after topping 4% briefly last week.
Meanwhile, a weakening in the most recent job openings data had some investors considering whether the Federal Reserve will slow the pace of interest rate hikes.
Market participants wondered whether those signs could mean markets have finally priced in a bottom after the sharp declines in the prior quarter.
“I don’t think you have to worry about a recession until the second half of ’23,” Stifel chief equity strategist Barry Bannister said Tuesday on CNBC’s “Closing Bell: Overtime.” “So there is room for a rally as you go into the early part of next year.”
Traders are expecting a raft of economic reports on Wednesday. Data on weekly mortgage applications is expected. September’s ADP private payrolls report is due out at 8:15 a.m. ET. The latest international trade reading is due at 8:30 a.m. ET, while the ISM services index is set to be released at 10 a.m. ET.