Stock futures fell on Wednesday as a rally that has propelled stock prices higher since mid-June looked set for a respite.
Futures contracts linked to the Dow Jones Industrial Average fell 186 points, or 0.55%. S&P 500 and Nasdaq 100 futures fell 0.76% and 0.87% respectively.
The Dow notched its fifth straight day of gains on Tuesday. Meanwhile, the S&P 500 is enjoying its fifth consecutive positive week as investors continue to assess the strength of this rally. The broad stock index is now up 18% from its June lows.
At the same time, additional uncertainty remains in the market as the Federal Reserve plans to continue raising rates and shrinking the size of its balance sheet.
“We advise investors against continuing this rally,” Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note to clients on Wednesday. “We anticipate further market volatility ahead and continue to recommend positioning portfolios for resilience in various scenarios.”
On Wednesday, traders continued to comb through corporate earnings in the retail sector. Walmart and Home Depot reported Tuesday, while Lowe’s and Target released earnings Wednesday morning.
Wall Street also anticipated the release of US retail sales data and the latest Fed meeting.