FOLLOW US

U.S. stock futures plunged on Wednesday, putting Wall Street on track shed some of its sharp gains from the last two sessions.

Dow Jones Industrial Average futures fell by 275 points, or 1%. S&P 500 and Nasdaq 100 futures slipped 1% and 0.9%, respectively.

The Dow on Tuesday soared about 825 points, or 2.8%. The S&P 500 added nearly 3.1%, while the Nasdaq Composite gained 3.3%. Those gains, which come from falling bond yields, led to the two-day stretch for the S&P 500 since 2020.

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.