Traders
work
on
the
floor
at
the
New
York
Stock
Exchange
on
Feb.
7,
2024.
Brendan
Mcdermid
|
Reuters
U.S.
stock
futures
were
flat
Tuesday
night
after
the
Dow
Jones
Industrial
Average
posted
its
biggest
decline
since
March
2023.
Futures
tied
to
the
Dow
slipped
15
points,
or
0.04%.
S&P
500
futures
inched
up
0.02%,
and
Nasdaq
100
futures
added
0.07%.
In
after-hours
trading,
Lyft
shares
jumped
more
than
16%
after
the
ride-hailing
company
posted
better-than-expected
earnings
in
the
fourth
quarter.
Airbnb
slipped
more
than
4%
even
as
the
company
beat
on
revenue
expectations
in
its
latest
quarter.
During
Tuesday’s
regular
session,
the
30-stock
Dow
shed
1.35%
for
its
worst
day
since
March
2023.
The
S&P
500
lost
1.37%,
and
the
Nasdaq
Composite
slumped
1.8%.
A
hotter-than-anticipated
inflation
reading
incited
the
sell-off
as
traders
fretted
that
the
Federal
Reserve
may
not
cut
interest
rates
as
early
as
they
had
hoped.
The
consumer
price
index
gained
0.3%
in
January
on
a
monthly
basis
and
rose
3.1%
year
over
year.
Meanwhile,
economists
polled
by
Dow
Jones
were
forecasting
a
0.2%
month-over-month
increase
and
2.9%
from
the
prior
year.
Although
January’s
CPI
report
likely
pushes
the
likelihood
of
a
Fed
rate
cut
to
the
second
half
of
2024
—
versus
investors’
initial
expectations
of
rate
cuts
as
early
as
March
—
the
market
rally
isn’t
over,
according
to
U.S.
Bank
Wealth
Management
chief
equity
strategist
Terry
Sandven.
Tuesday’s
pullback
“allows
valuations
to
come
a
little
bit
more
in
line
with
fundamentals.
The
reset
gives
investors
oriented
toward
reasonable
valuations
an
opportunity
to
perhaps
get
into
the
market,”
he
said.
“But
importantly,
with
inflation,
interest
rates
and
earnings
still
being
supportive
of
higher
equity
prices,
we
do
not
believe
this
is
the
beginning
of
the
end,
with
a
prolonged
downturn
in
front
of
us,”
Sandven
added.
On
Wednesday,
Wall
Street
will
be
listening
for
comments
from
Chicago
Fed
President
Austan
Goolsbee.
Several
big
names
are
posting
earnings,
with
Generac
and
Kraft
Heinz
reporting
on
Wednesday
morning.
Cisco
Systems
and
Occidental
Petroleum
will
issue
results
after
the
close.
