U.S. stock futures wobbled Wednesday ahead of more earnings reports and data on the services sector that would provide fresh insights into the pace of the economic recovery.
Futures tied to the S&P 500 ticked down 0.1%, pointing to a pause after a rally Tuesday that sent the broad-market index to a record close. Nasdaq-100 futures wavered between gains and losses, while Dow Jones Industrial Average futures retreated 0.1%.
Stocks have ground higher this week amid strong earnings reports and signs that the economic rebound remains under way, albeit at a slower pace than in recent months. But the spread of the Delta variant of Covid-19 and a slowdown in the rate of vaccinations is prompting some concern that authorities may reimpose or tighten restrictions on social activity and travel.
“We’re entering a stage where growth is still strong, but not as strong as the initial stage of the recovery,” said Sebastian Mackay, multiasset fund manager at Invesco. “The implications for markets would be if earnings fail to sustain the very strong performance they have been reporting. Are we entering a stage of the cycle where earnings are still reasonably robust, but the recovery is difficult to sustain?”
In bond markets, the yield on the benchmark 10-year Treasury note edged up to 1.177% from 1.174% on Tuesday.