Dow futures fall after two consecutive days of gains on Wall Street

Stock futures fell Wednesday after two consecutive days of gains on Wall Street.

Futures on the Dow Jones Industrial Average fell 109 points, or 0.3%. S&P 500 futures were down 0.2% and Nasdaq 100 futures were little changed.

On Tuesday, investors shrugged off some signs of an economic slowdown ahead of a key inflation measure. The S&P 500 gained nearly 1% and rose for the second day in a row. The 30-share Dow rose more than 260 points on Tuesday, while the tech-heavy Nasdaq Composite rose 0.9%.

Target lowered its earnings estimates on Tuesday and said it plans to get rid of excess inventory. The development revealed risks to economic growth amid rising inflation. Meanwhile, the Atlanta Federal Reserve’s GDPNow tracker showed a growth rate of just 0.9% for the second quarter, down from 1.3% last week.

†[The] The market could continue to reflect concerns about tightening financial conditions and slowing earnings growth,” Lauren Goodwin, an economist and portfolio strategist at New York Life Investments, said in a note.

All eyes are on Friday’s Consumer Price Index for May. Many believe the imprint will be crucial to the path of Fed policy and whether the central bank will continue to raise interest rates in 50 basis point increments.

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The stock market has had a rollercoaster year as the Fed’s aggressive rate hikes have fueled fears of a recession. The S&P 500 is nearly 14% lower than its all-time high in January. The stock benchmark briefly dived into bear market territory on an intraday basis last month.

“The question is whether this slower implied pace of tightening is due to a belief that the Fed will meet its policy goals or that the economy will slide into recession,” said Gargi Chaudhuri, head of iShares Investment Strategy at BlackRock. “We believe the US will avoid a recession.”

A slew of retailers and consumer companies will report quarterly results on Wednesday, including Campbell Soup, Ollie’s Bargain Outlet and Five Below.

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