S&P 500 futures were flat on early Wednesday as investors looked to see whether a late-day swing Tuesday in the market would continue.
Futures contracts for the Dow Jones Industrial Average pointed to an opening gain of about 23 points. Futures tied to the S&P 500 were flat. Nasdaq 100 futures fell by 0.2%.
Tesla shares were higher by 3% in premarket trading after it was revealed Ark Invest’s Cathie Wood bought a ton more of her biggest holding during Tuesday’s selling. Wood bought more than $120 million worth for the flagship Ark Innovation ETF, according to the firm’s website.
The move in futures followed a wild comeback during Tuesday’s market hours that saw the Dow and S&P 500 erase sharp losses to finish modestly higher. The positive finish snapped a five-day skid for the S&P 500. The Nasdaq Composite, which was down nearly 4% at one point, finished with a loss of just 0.5%.
The rebound began after Federal Reserve Chair Jerome Powell released his prepared remarks for a hearing with the Senate Banking Committee, with the central bank chief saying that inflation was “soft” and that the U.S. economy was “a long way from our employment and inflation goals.” Bond yields had perked up in recent weeks, feeding fears that the Fed might alter its dovish policy stance.
Marci McGregor, senior investment strategist at Bank of America Merrill Lynch, said on “Closing Bell” market sentiment pointed to a needed pullback but the overall setup for stocks remained positive.
“We’re still in the earnings of a new economic expansion. Our view is we’re in a long-term secular bull market,” McGregor said. “We heard from Jay Powell today, and it sounds like he still has his foot on the gas.”
The market’s overall rebound on Tuesday was mirrored in the moves of tech giant Apple and electric-vehicle stock Tesla, which finished with losses of 0.1% and 2.2%, respectively, after suffering much steeper losses earlier in the day. Energy stocks and financials outperformed, while tech and consumer discretionary plays lagged the broader market.
Apple was slightly lower in premarket trading.
On Wednesday, Powell’s visit to Capitol Hill will continue when he addresses the House of Representatives Financial Services Committee. Investors will also get another look at the construction industry with data on new home sales and an earnings report from Lowe’s.