Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 29, 2024.
Brendan McDermid | Reuters
U.S. stock futures rose Wednesday, following a sharp sell-off for all three major averages.
Futures tied to the Dow Jones Industrial Average climbed 82 points, or 0.2%. S&P 500 and Nasdaq-100 futures advanced 0.3% and 0.7%, respectively.
CrowdStrike soared more than 20% on a top-and-bottom line beat for the latest quarter, as well as strong guidance for the full year. Nordstrom tumbled 10% after warning of potential sales declines in 2024.
The action comes after the three major averages notched a second consecutive day of declines. The Dow, S&P 500 and Nasdaq Composite all fell at least 1%.
Investors dumped large-cap tech names, fueling Tuesday’s losses and notching the worst day since Jan. 2 for the tech sector. Apple shares tumbled nearly 3% on a report from Counterpoint Research, which said that iPhone sales in China slid 24% in the first six weeks of 2024. Microsoft tumbled close to 3%, dragging down the broader market.
“The market is very resilient in the face of a lot of different news,” said Jay Hatfield, founder and CEO of Infrastructure Capital Advisors. He added that, “It’s really just the tech stocks melting down and everything else rallying, so it’s a more rotational market than a straight-down market.”
On Wednesday, investors will be watching Fed Chair Powell’s testimony before the House Financial Services Committee. They will be seeking additional clarity on where the central bank stands on monetary policy and looking for clues on the pace and timing of anticipated interest rate cuts this year.
The central bank leader will speak before the Senate Banking Committee on Thursday.
While the market will likely react to Powell’s commentary, Hatfield thinks that his remarks should not come as a surprise to investors.
“In a market with limited information flow, it’s going to dominate the trading, but it’s been heavily foreshadowed,” he said.