By Scott Kanosky
Investing.com – U.S. stock futures are pointing to a lower open on Wall Street on Wednesday, which could end a strong multi-day rally to start the fourth quarter of 2022.
At 06:19 EST (10:19 GMT), the contract was down 280 points, or 0.92%, trading 34.50 points, or 0.92%, lower, and heavy tech shedding 104 points, or 0.88%.
The drop comes after Wall Street’s strong showing so far this week, with the S&P 500, in particular, posting its biggest two-day rally since the early days of the COVID-19 pandemic in April 2020. The rally extended to dealmaking Asia, but has lost steam since Then since the opening of markets in Europe.
Much of the previous rally in the US was caused by weak US employment data, which showed the biggest drop in nearly two and a half years in August. This pullback points to a possible slowdown in the raging US labor market, thus leading investors to hope that the Federal Reserve may begin to undo the latest bout of monetary tightening.
Major US stock indexes closed sharply higher on Tuesday, with blue-chips gaining more than 825 points, or 2.80%. Broadband is up 3.06% and is up 3.34%.
The decline in futures was also accompanied by a broad sell-off in global bond markets as well as the continued strength of the US dollar.
In particular, UK government debt, which was at the center of Britain’s turbulent trade last week, saw a 0.14 percentage point jump to 4.0155%. – often a gauge of interest rate expectations – added 0.10 percentage point to 4.001%.
Treasuries also rose. The key increased 0.08 percentage points to rise to 3.695%.
Meanwhile, the dollar, which is a measure of the currency against a basket of six similar currencies, rose 0.71% to 110.85.
In corporate news, Twitter Inc Shares of (NYSE:) fell slightly into the red in premarket trading, after rallying sharply on Tuesday after a report that Elon Musk would offer to buy the social media company at the initially agreed price of $44 billion. Musk later confirmed the speculation in a letter to Twitter.
Elsewhere, oil prices rose as the Organization of the Petroleum Exporting Countries (OPEC) and its allies retain major control today. Reports indicate that the oil group, known as OPEC+, will unveil a significant drop in crude production.
The move would mark the largest cut since the COVID-19 pandemic, and comes as OPEC+ looks to provide renewed support for oil prices after a sharp drop since the middle of the year.
By 07:00 ET, futures were up 0.59% at $87.03 while the contract was up 0.63% at $92.38.
In addition, it was down 0.54% to $1,721.15 an ounce, while it was down 0.60% at $0.9923.