Stock futures were just under the flatline Wednesday morning.
Futures tied to the Dow Jones Industrial Average were down 20 points, or 0.06%, while S&P 500 futures were 0.06% lower and Nasdaq 100 futures were down 0.07%.
In regular trading the Dow fell more than 350 points, or 1.03%. The S&P 500 and Nasdaq Composite lost 1.4% and 2%, respectively.
The moves came as investors lost hope that the Federal Reserve will be able to engineer a soft landing. Instead, concerns swirled around the state of the economy and whether an economic downturn is approaching.
“Investors couldn’t decide which they were more worried about: an impending recession, as implied by November declines for the ISM, Chicago PMI and Philly Fed, as well as housing data, or the threat of a more hawkish-leaning FOMC, as a result of stronger than expected employment data and factory orders,” said Sam Stovall, chief investment strategist at CFRA Research. “Stocks sold off across the board, as investors decided to take the profits generated by the last two monthly price gains, the first since August 2021.”
Investors await more economic data this week for clues on what to expect from the Fed. On Wednesday, the Mortgage Bankers Association will release its weekly report of mortgage loan applications.
There are also still several companies set to report earnings. Campbell Soup and GameStop will report results on Wednesday.