Stock futures inch higher after major averages suffer worst day since June

Stock futures inched higher Tuesday as the market tried to recover from its worst say since June.

Futures tied to the Dow Jones Industrial Average added 40 points, or 0.1%, while S&P 500 and Nasdaq 100 futures also gained 0.1%.

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.

Wall Street is coming off a downbeat session, as a summer rally continued to fade amid mounting rate hike concerns.

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.

Monday’s sell-off was broad-based, with all 11 S&P 500 sectors closing lower, led by declines in information technology and consumer discretionary stocks. A slide in tech stocks weighed down the tech-heavy Nasdaq.

“The global growth story is in shambles right now,” said Ed Moya, a senior market analyst at Oanda. “That’s what’s really kind of weighing on risk appetite right now because you can’t have the U.S. continue to be attractive while the rest of the world is crumbling.”

This sentiment will continue to put pressure on big tech and consumer discretionary stocks, he said. Moya, echoing other investors, expects another round of hawkish pushback from Fed chair Jerome Powell when he speaks Friday at the central bank’s annual Jackson Hole economic symposium.

Earnings season continues Tuesday with results from Macy’s, Nordstrom and Dick’s Sporting Goods. July new home sales will also be reported, along with August manufacturing PMI and the August Richmond Fed survey.