Dow Futures Slip as Investors Evaluate Cooling Economy

By Oliver Gray

U.S. stock futures were trading slightly lower on Wednesday evening, following a day when major benchmark indices closed positively. This upturn was bolstered by weakening economic data that raised expectations that aggressive interest rate hikes are beginning to ease economic pressures, even as Federal Reserve officials signaled a commitment to maintaining higher rates in the foreseeable future.

As of 18:40 ET (23:40 GMT), major futures were down 0.1%, while other indices remained relatively stable.

In after-hours trading, Richardson Electronics Ltd saw a notable increase of 7.6% after reporting a Q2 EPS of $0.39, surpassing the anticipated $0.29. Their revenue also exceeded expectations, coming in at $65.9 million against an expected $64.5 million.

Conversely, Simulations Plus experienced a decline of 2.8% after posting a Q1 EPS of $0.06, which was lower than the expected $0.09. Their revenues also fell short, reporting $11.96 million against the anticipated $12.39 million.

Looking ahead to Thursday’s session, investors will focus on several key indicators including various PMIs, as well as speeches from Federal Reserve representatives.

On Wednesday, the Dow Jones Industrial Average increased by 133.4 points, or 0.4%, to close at 33,269.8. The S&P 500 climbed 28.9 points, or 0.8%, finishing at 3,853, while the Nasdaq Composite rose by 71.8 points, or 0.7%, to end at 10,458.8.

In the bond markets, interest rates were recorded at 3.694%.