Stocks fell on Wednesday as a rally that has propelled equity prices higher since mid-June appeared poised for a respite.
Futures tied to the Dow Jones Industrial Average fell 232 points, or 0.68%. S&P 500 futures and Nasdaq 100 futures slid 0.92% and 1.05%, respectively.
The Dow notched its fifth straight day of gains Tuesday. Meanwhile, the S&P 500 is going for its fifth positive week in a row as investors continue to gauge how much strength this rally has. The broad market index is now up 18% from its June lows.
At the same time, further uncertainty remains in the market as the Federal Reserve plans to continue raising rates and shrinking the size of its balance sheet.
“We would caution investors against chasing this rally,” said Mark Haefele, chief investment officer at UBS Global Wealth Management in a note to clients Wednesday. “We expect renewed market volatility ahead, and we continue to recommend positioning portfolios for resilience under various scenarios.”
Data releasedby the Census Bureau on Wednesday showedretail sales remain unchanged in Julyamid declines in auto sales and gasoline prices, although consumers did increase spending online.
Traders on Wednesday continued to comb through corporate earnings from the retail sector. Walmart and Home Depot reported Tuesday, while Lowe’s and Target posted earnings Wednesday morning.
Wall Street also looked ahead to the release of minutes from the Fed’s most recent meeting.