U.S. stock futures were about flat on Thursday morning after falling in the regular trading session and breaking a massive two-day rally.
Dow Jones Industrial Average futures declined by 14 points, or 0.05%. S&P 500 futures were little changed, and Nasdaq 100 futures climbed 0.11%.
Stocks fought to hold onto the winning streak Wednesday but ultimately fell short. The Dow closed about 42 points lower, or 0.14%, rebounding from the session’s low of nearly 430 points. The S&P 500 and the Nasdaq Composite slid 0.20% and 0.25%, respectively.
Rising yields added pressure to stocks Wednesday. The rate on the 10-year U.S. Treasury topped 3.7%, rising from 3.6% a day earlier.
“Few are convinced that the recent move is more than a bear market rally, with skepticism over the durability,” said Mark Hackett, chief of investment research at Nationwide. “Confidence remains weak, ranging from CEOs, small businesses, consumers, and investors. Universal pessimism is bullish from a contrarian perspective, though timing of the pendulum swing is difficult to predict.”
Investors continue to monitor economic data to see if inflation is cooling off, or if the Federal Reserve’s rate hikes are pushing the U.S. closer to a recession.
Data from ADP showed that the labor market remained strong among private companies in September, when businesses added 208,000 jobs. That beat the 200,000 job estimate from Dow Jones. On Friday, the September jobs report from the Bureau of Labor Statistics will be released, giving the central bank and investors another piece of data.
Some companies are reporting earnings, as well. On Thursday, Constellation Brands will announce its results before the opening bell, and Levi Strauss will report after the market closes.