Following a significant decline in the previous session, stocks are likely to show little movement in early trading on Wednesday. Current indicators suggest that the major index futures, including the S&P 500, may open flat with a slight uptick of less than 0.1%.
The uncertainty surrounding the immediate future of the markets may lead some traders to adopt a cautious approach, especially after Tuesday's downturn influenced by tech stocks. This decline followed a period of record-high closures for the Dow and S&P 500 on Monday.
Investors may also be hesitant to make bold decisions ahead of several critical economic reports scheduled for release on Thursday, including data on weekly jobless claims, retail sales, and industrial production. These reports are particularly important as traders seek further insights into the economic landscape and potential interest rate adjustments.
A recent report from the Labor Department indicated a continued drop in U.S. import prices for September, falling by 0.4% compared to the previous month's adjusted decline of 0.2%. This decrease was in line with economists' predictions and marks a 0.1% year-over-year drop, the first since February. Additionally, export prices decreased by 0.7% in September, following a revised 0.9% drop in August, surpassing economists' forecast of a 0.4% decline. Year-over-year, export prices fell by 2.1%, the largest decrease since January.
On the corporate front, Morgan Stanley shares are showing significant pre-market strength following their better-than-expected third-quarter results. Similarly, J.B. Hunt Transport Services is likely to experience an initial boost after also reporting impressive quarterly results.
Despite an early upward movement on Tuesday, stocks faced substantial selling pressure later in the day, with major averages dropping significantly after Monday's strong gains. The Nasdaq, heavily influenced by the tech sector, decreased by 187.10 points or 1.0% to 18,315.59, the Dow dropped by 324.80 points or 0.8% to 42,740.42, and the S&P 500 fell by 44.59 points or 0.8% to 5,815.26.
Internationally, stock markets in the Asia-Pacific region were mostly down on Wednesday, with Japan's Nikkei 225 plunging 1.8% and Australia's S&P/ASX 200 decreasing by 0.4%. Meanwhile, European markets exhibited mixed performances, with the U.K.'s FTSE 100 rising by 0.8%, while Germany's DAX and France's CAC 40 fell by 0.1% and 0.5%, respectively.
In commodities, crude oil futures modestly increased by $0.10 to $70.68 a barrel after Tuesday's substantial fall of $3.25 to $70.58. Gold continues its upward movement, currently trading at $2,696.10 per ounce, up $17.20 from the previous session's close.
On the currency market, the U.S. dollar is trading at 149.38 yen, slightly higher than Tuesday's close of 149.20 yen. Against the euro, it stands at $1.0888, a marginal decline from $1.0893 the previous day.
