Stock futures are lower after Wall Street snaps two-day win streak

Finance

Stock futures were flat in overnight trading Wednesday after the major averages ended the regular session lower and U.S. Treasury yields rose.

Futures on the Dow Jones Industrial Average inched about 30 points higher, or 0.1%. S&P 500 futures and Nasdaq 100 futures were flat.

Shares of Five Below dropped more than 6% in extended trading after first-quarter sales came in softer than anticipated and the retailer shared weak guidance for the current period.

During regular trading, the Dow Jones Industrial Average dipped 269.24 points, or 0.81%, to 32,910.90, while the S&P 500 shed 1.08% to close at 4,115.77. The Nasdaq Composite slid 0.73% to finish at 12,086.27.

Investors on Wednesday continued to look for signs of slowing economic growth ahead of May’s consumer price index reading slated for Friday. The data is expected to come in slightly below April’s numbers and could indicate that inflation has reached its peak.

Meanwhile, the bond market gave little hope to investors as the 10-year Treasury yield rose above the 3% mark. Oil prices also spiked to a 13-week high, with U.S. West Texas Intermediate crude gaining 2.26% to settle at $122.11 per barrel.

Ten of the 11 S&P sectors ended the day in the negative, dragged down by real estate. Energy, meanwhile, closed at its highest level since 2014.

During regular trading Wednesday, shares of Intel slid more than 5% and dragged down the 30-stock Dow after the company warned of weakening demand for semiconductors. Chinese tech stocks rose, with JD.com adding nearly 8% and helping to limit the Nasdaq’s losses. Following a strong quarterly earnings report, Campbell Soup added 1.5%.

Fundstrat’s Tom Lee told CNBC’s “Closing Bell: Overtime” on Wednesday that the likelihood of a soft landing from the Federal Reserve is growing and stocks have priced in “almost a full-blown recession.”

“I think there’s a series of hikes coming, but it’s really the Fed being more hawkish than expectations that alarms markets,” he said.

Initial jobless claims and earnings from Nio, DocuSign and Rent the Runway are on deck for Thursday.

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