Equities Flounder Post-Rally - InvestingChannel

Equities Flounder Post-Rally

Stock futures slumped Thursday, putting the major averages on track to give back some of the sharp gains seen in the previous session.

Futures fumbled 226 points, or 0.8%, early Thursday to 29,524.

Futures for the S&P 500 gave up 36 points, or 1%, to 3,696.

Futures for the NASDAQ Composite Index withered 148.75 points, or 1.3%. at 11,407.

Wednesday’s rally put the major averages on pace to eke out small gains for the week, but they are still on track to cap off their worst month since June.

The NASDAQ Composite is leading the monthly losses, down about 6.5%, while the Dow is on pace to lose 5.8% and the S&P is set to close 5.9% lower.

On a quarterly basis, the NASDAQ is on track to break a two-quarter losing streak, while the Dow is headed for its third consecutive quarterly loss for the first time since the third quarter of 2015.

The S&P is on pace for its third negative quarter in a row for the first time since its six-quarter negative streak that ended the first quarter of 2009.

Apple shares dipped more than 2% after Bank of America downgraded the tech giant to neutral from buy and slashed its price target on the stock.

Analysts at Wells Fargo initiated Coinbase with an underweight, citing rising macroeconomic pressures among other potential negative catalysts.

The moves followed a broad rally for stocks a day earlier, as the Bank of England said it would purchase bonds in an effort to help steady its financial markets and the cratering British pound. Sterling has stooped to record lows against the U.S. dollar in recent days.

It marked a stark shift from the aggressive tightening campaign many global central banks have undertaken to cope with surging inflation.

The Dow on Wednesday gained or 1.9%, while the S&P 500 rose nearly 2% after hitting a new bear market low on Tuesday. Both indexes snapped six-day losing streaks.

In Japan, the Nikkei 225 gained 1%, while in Hong Kong, the Hang Seng fell 0.5%.

Oil prices inched up 10 cents to $82.25 U.S. a barrel.

Gold prices faltered $10.70 to $1,659.30 U.S. an ounce.

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