Following a weak session the day before, US stock futures saw a decline on Wednesday, with contracts on the S&P 500 futures falling 0.2%, the Dow Jones shedding more than 210 points, and the Nasdaq 100 plunging 0.3%.
On Tuesday, the tech-heavy Nasdaq closed higher for the fifth consecutive trading session and now is only 0.5% below its all-time high.
On Wednesday, despite beating on earnings and improving its full-year growth projection, Coca-Cola shares lost more than 2% in premarket trading as traders continued to analyze a slew of new corporate reports. Starbucks reported reduced net revenue and profit as a result of lower demand in the US, which caused the company to drop 4%.
Ahead of its quarterly report following the closing bell, Tesla was also down (-0.5%). Additionally, after the US CDC reported that an E. coli outbreak linked to McDonald’s Quarter Pounder burgers had resulted in 10 hospitalizations and one fatality, the company’s stock fell almost 6%. In contrast, AT&T had a 2.8% increase in premarket hours after its customer base grew more than expected.
After a quiet session the day before, the Hang Seng rose 261 points, or 1.3%, to close at 20,760 on Wednesday, driven by broad-based increases in the financials, tech, and consumer sectors. As Chinese markets surged for a fourth day, traders increased fresh positions driven by wagers on a CNY 2 trillion market stabilization fund proposed by a research tank with ties to the government.
On Wednesday, the Shangai Composite Index in China increased by 17 points, or 0.51%. LONGi Green (6.42%), Yonghui Superstore (8.21%), and Shanghai Electric (10.05%) lead the gains. China Coal (-2.22%), Aluminum Corporation of China (-1.81%), and Haitong Secur (-1.79%) were the biggest losses.
As more economic data becomes available, some experts are being cautious, even though the Federal Reserve has predicted additional interest rate reduction this year. In keeping with the central bank’s own forecasts, investors are pricing in rate reduction at each of the next two Fed meetings.
Minneapolis Federal Reserve Bank President Neel Kashkari announced moderate rate cuts in the coming quarters, while Atlanta Fed President Raphael Bostic stated he’s not in a rush to cut rates.