Stock futures are little changed after major averages suffer worst day since June

Stock futures were little changed Tuesday after the market’s worst day since June and as investors braced for a hawkish message from the Federal Reserve.

Futures tied to the Dow Jones Industrial Average fell 35 points, or 0.09%, while S&P 500 futures dipped 0.07% and Nasdaq 100 futures gained 0.01%.

Traders are coming off a downbeat session, as a summer rally fizzled out amid mounting rate hike concerns, and the 10-year Treasury yield continued to climb above 3%.

The Dow dropped more than 600 points Monday, while the S&P 500 and Nasdaq Composite fell more than 2% each. Those were the biggest one-day drops for the Dow and S&P 500 since June 16. The Nasdaq suffered its worst session since June 28.

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“This bear in our view has one last act,” read a note from Morgan Stanley Wealth Management’s Lisa Shalett. The head of the global investment committee said Wall Street is underestimating inflation, growing recession risks, and earnings expectations that will have to come down at some point.

Palo Alto Networks surged in the premarket on the back of strong quarterly results, while Zoom Video shares slumped after the video conferencing company lowered its full-year forecast.

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