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Dow futures drop more than 350 points as choppy October continues

A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 5, 2021.
Andrew Kelly | Reuters

Stock futures inched higher in overnight trading after the market rebounded Tuesday from a tech-led sell-off the day prior.

Futures on the Dow Jones Industrial Average gained 55 points, or 0.2%. S&P 500 futures ticked up 0.1% and Nasdaq 100 futures added 0.1%.

The market saw a broad rally during Tuesday’s regular session with nine out of 11 S&P 500 sectors closing positive. The Dow gained 312 points, or 0.92%. The S&P 500 rose 1.05% and the Nasdaq Composite rallied 1.25%. 

Mega-cap tech stocks closed higher Tuesday after being knocked down the prior trading session. Facebook stayed in focus following a lengthy outage and claims by a whistleblower that the company knows it’s harming people.

The financial sector finished Tuesday as the best performing segment of the S&P 500, up 1.78%. Other sectors geared toward a recovering economy also saw shares rise. Energy names gained as oil prices climbed. Cruise, airline and retail stocks also advanced.

A better-than-expected manufacturing reading Tuesday aided optimism about the economic recovery. The Institute for Supply Management’s services purchasing managers’ index report for September rose to 61.9 from 61.7 in August, 0.2 points better than expected.

“Investors lean into risk on the back of another strong business sentiment survey that may suggest that the Delta-driven growth slowdown of late summer is already a thing of the past,” Goldman Sachs’ Chris Hussey said in a note Tuesday.

Denim retailer Levi Strauss and alcoholic beverage corporation Constellation Brands are set to report quarterly earnings Wednesday.

The ADP private payrolls report for September is set to be released Wednesday. Also on the labor market front, the closely watched nonfarm payrolls report for September is slated for release Friday.

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