Stock futures are slightly lower as market rally falters: Live updates

U.S. stock futures were slightly lower on Wednesday as investors took a breather from last week’s market rally.

Futures tied to the Dow Jones Industrial Average dipped 19 points, or 0.1%.S&P 500 and Nasdaq-100 futures also nudged lower by 0.1%.

Shares of FedEx fell about 3% in premarket trading after the shipping giant posted weaker-than-expected revenue for its most recent quarter.

On Tuesday, stocks closed lower for the second trading day in a row. The Dow fell 245.25 points, or 0.72%. The S&P 500 slid 0.47%, and the Nasdaq Composite lost 0.16%.

Stocks are overbought and in need of a catalyst, according to Quincy Krosby, chief global strategist for LPL Financial. Indeed, last week the S&P 500 hit its highest level since April 2022 and posted its fifth consecutive positive week.

“With the S&P 500 and Nasdaq marching higher and breaking through key resistance levels, and underpinned by stronger volume and broader participation, markets reached short-term overbought levels on Friday,” she said by email. “‘Triple witching’ options expiration on Friday added to volatility, but the sell-off on Friday wasn’t overly dramatic, leaving markets to digest their gains, and wait for another powerful catalyst.”

Elsewhere, Federal Reserve Chair Jerome Powell is set to testify before the House Financial Services Committee at 10 a.m. ET.

At the conclusion of the central bank’s meeting last week, policymakers indicated there could be two more quarter-percentage point moves on the horizon this year.

“Powell seemed to meander between the need to restore price stability, but also suggesting that the Fed could wait to see how the economy responds to the unfolding of the 500 basis points working their way into the broader economy,” Krosby said.

With sentiment upbeat and markets “overbought,” “Powell could provide a modicum of support to the market’s advance, but if he suggests that he’s in the hawkish camp, markets may need to continue to unwind gains until a more viable catalyst emerges,” Krosby added.

As far as quarterly results, Winnebago will report earnings before the bell, and KB Home will report after the close.