U.S. Stocks May Give Back Ground In Early Trading

After moving sharply higher over the two previous sessions, stocks may move back to the downside in early trading on Wednesday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 263 points.

Traders may look to cash in on the strong gains posted early in the week amid lingering concerns about the outlook for the global economy.

Central banks around the world appear poised to continue raising interest in the months ahead, potentially tipping the global economy into a recession as they seek to combat elevated inflation.

A rebound by treasury yields may also weigh on the markets, with the yield on the benchmark ten-year note regaining ground after moving notably lower over the two previous sessions.

The futures have seen continued weakness following the release of a report from payroll processor ADP showing private sector employment in the U.S. increased by slightly more than expected in the month of September.

ADP said private sector employment surged by 208,000 jobs in September after climbing by an upwardly revised 185,000 jobs in August.

Economists had expected employment to jump by 200,000 jobs compared to the addition of 132,000 jobs originally reported for the previous month.

The Commerce Department released a separate report showing the U.S. trade deficit narrowed by more than expected in the month of August.

U.S. stocks climbed higher on Tuesday, rising sharply for a second straight session amid hopes the Federal Reserve will slow down its aggression with regard to interest rate hikes after data showed a drop in job openings in the country.

The major averages all post strong gains. The Dow ended stronger by 825.43 points or 2.8 percent at 30,316.32. The S&P 500 soared 112.50 points or 3.1 percent to settle at 3,790.93, and the Nasdaq surged to 11,176.41, gaining 360.97 points or 3.3 percent.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan’s Nikkei 225 Index rose by 0.5 percent, while Hong Kong’s Hang Seng Index spiked by 5.9 percent.

Meanwhile, the major European markets have moved to the downside on the day. While the German DAX Index has slumped by 1.1 percent, the U.K.’s FTSE 100 Index is down by 0.9 percent and the French CAC 40 Index is down by 0.8 percent.

In commodities trading, crude oil futures are inching up $0.25 to $86.77 a barrel after surging $2.89 to $86.52 barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,719.70, down $10.80 compared to the previous session’s close of $1,730.50. On Tuesday, gold jumped $28.50.

On the currency front, the U.S. dollar is trading at 144.45 yen compared to the 144.13 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $0.9914 compared to yesterday’s $0.9986.

Source: Read Full Article