Inventory futures are flat after market sell-off


Traders on the floor of the New York Stock Exchange.

Source: NYSE

Stock futures were flat in overnight trading on Thursday after major indices fell on concerns over slowing economic growth.

Futures on the Dow Jones Industrial Average added 7 points, or 0.02%. S&P 500 futures and Nasdaq 100 futures also traded near the flatline.

Thursday’s losses came as the spread of the highly contagious Delta-Covid variant also fueled concerns over the global economic recovery. The Olympics announced a ban on spectators for the Tokyo Summer Games when Japan declared a state of emergency to curb the spread of the coronavirus.

The Dow closed Thursday’s regular session 259.86 points, or 0.75% lower. The S&P 500 lost 0.86% while the Nasdaq broke its four-day winning streak, down 0.72%.

All three major averages are on track to close lower for the week.

Stocks of companies tied to the economic comeback weighed on the market on Thursday. Large cruise lines, airlines, and home improvement stocks plummeted. Chip stocks also fell, and big tech names fell after rising in previous sessions.

“[T]The market continues to consider what to do after spikes in growth and the Fed will turn the tap (which has not necessarily happened yet) and ahead of a profitable season in Q221 starting next Tuesday, “Goldman Sachs’ Chris Hussey said in a statement on Thursday .

The latest unemployment claims report, released Thursday, also indicated a potential slowdown in the labor sector as first-time applicants for unemployment benefits unexpectedly rose to 373,000 in the week ending July 3. According to the Dow Jones, economists wanted 350,000 initial applications.