U.S. stocks could struggle for direction on Wednesday after the market struggled en route to a mixed close in the previous session. Volatility could be the order of the day as another batch of Fed speeches are in the pipeline.
Tuesday, the major averages opened notably higher and moved sideways in early trading, encouraged by dovish comments by Chicago Fed President Charles Evans.
With the decline, the S&P 500 breached the mid-June lows on an intraday basis also and closed at its lowest level since Nov. 30, 2020.
|S&P 500 Index||-1.03%||3,647.29|
Here’s a peek into index futures trading:
|Nasdaq 100 Futures||-0.38%|
|S&P 500 Futures||+0.02%|
In premarket trading on Wednesday, the SPDR S&P 500 ETF TrustSPY was up 0.13% to $359.05, while Invesco QQQ Trust QQQ was down 0.23% to $273.86, according to Benzinga Pro data.
“That the message from the Fed to ‘keep at it,’ straight out of inflation slayer’s Paul Volcker’s lexicon, suggests that market participants are going to be much more cautious before embracing a bounce and taking it to the next level,” said Quincy Krosby, chief global strategist at LPL Financial.
On the economic front, traders get to digest the Mortgage Bankers Association’s mortgage applications volume data for the week ended Sept. 23.
The focus is also likely to be on the National Association of Realtors’ pending home sales index for August, …….