The S&P 500 futures were unchanged early Wednesday as investors checked to see if a late market swing would continue Tuesday.
Futures contracts for the Dow Jones Industrial Average indicated an opening gain of around 23 points. The futures linked to the S&P 500 were flat. Nasdaq 100 futures fell 0.2%.
Tesla shares rose 3% in premarket trading after it was revealed that Ark Invest’s Cathie Wood bought a ton more of their largest stake during the sale on Tuesday. According to the company’s website, Wood bought more than $ 120 million for the flagship Ark Innovation ETF.
Bitcoin, a barometer of speculation in the financial markets, bounced back above $ 50,000 after more purchases of Square’s cryptocurrency.
The futures move followed a wild comeback during Tuesday’s market hours, when the Dow and S&P 500 offset heavy losses and close slightly higher. The positive result brought the S&P 500 a five-day skid. The Nasdaq Composite, which had fallen nearly 4% at one point, ended up losing just 0.5%.
The rebound began after Federal Reserve Chairman Jerome Powell released his prepared remarks for a hearing before the Senate Banking Committee. The central bank chief said inflation is “soft” and the US economy is “far from our employment and inflation targets.” Bond yields had risen in recent weeks, raising fears that the Fed is changing its cautious policy stance could.
Marci McGregor, senior investment strategist at Bank of America Merrill Lynch, told Closing Bell that market sentiment indicated a need to pull back, but the general setup for stocks remained positive.
“We’re still gaining new economic expansion. We believe we are in a long-term secular bull,” said McGregor. “We heard from Jay Powell today and it sounds like he’s still on the gas.”
The general rebound in the market on Tuesday was reflected in moves by tech giant Apple and electric vehicle stock Tesla, which ended 0.1% and 2.2% down, respectively, after taking much steeper losses earlier in the day. Energy stocks and financials outperformed while technology and consumer discretion lagged behind the broader market.
Apple was slightly lower in premarket trading.
Powell’s visit to Capitol Hill will continue on Wednesday when he addresses the House of Representatives Financial Services Committee. Investors also get another look at the construction industry with data on new home sales and an earnings report from Lowe’s.
