The index futures point to another down day on Wall Street on Wednesday ahead of key catalysts coming on Friday and early next week.
Stocks pulled back yet again on Tuesday as worries concerning the economy’s health and a rising rate environment triggered a sell-off.
The S&P 500 Index and the Nasdaq Composite Index settled at a one-month low, while the Dow Industrials closed at its lowest since Nov. 17. Most sectors moved to the downside, led by technology, communications and energy stocks. Meanwhile, utility stocks gained ground in the session.
U.S. Indices’ Performance On Tuesday
Index
Performance (+/-)
Value
Nasdaq Composite
-2.00%
11,014.89
S&P 500 Index
-1.44%
3,941.26
Dow Industrials
-1.03%
33,596.34
If the Fed raises the fed funds rate by 50 basis points next week, the central bank will be near parity or neutral, Fund manager Louis Navellier said. A 50-basis-point hike will take Fed rates to 4.25%-4.50% and the 10-year Treasury note yield is currently around 3.5%, he noted.
“If the FOMC statement mentions dovish words like parity or neutral, the stock market could stage a massive relief rally. But the FOMC never fights market rates, so I …
