Stock futures were slightly higher on Wednesday evening when the latest CPI data showed that inflation is still hot.
The Dow Jones Industrial Average futures added 70 points, or 0.2%. S&P 500 futures and Nasdaq 100 futures added 0.2% each.
Shares of Bumble and Revian jumped 10% and 7%, respectively, in extended trading on the expected results of the recent quarter. Meanwhile, Disney shares fell nearly 2% after hours, despite strong earnings for the most recent quarter. The company says Covid is still weighing in on theme parks in Asia.
In regular trading, the Dow fell 326 points, or 1.02%. The S&P 500 is down 1.65% and the Nasdaq Composite is down 3.18%.
The move comes as investors assess the latest inflation data, which saw consumer prices jump 8.3% in April, higher than expected and still near their 40-year high of 8.5%. Analysts are mixed on whether inflation has peaked, according to the data.
While the market turned briefly positive at one point of the session, at one point the S&P 500 reached a new 52-week low and finally closed at a year low. The S&P 500 is up 18% and down 17% since the beginning of the year.
Nevertheless, Fundstrat market bull Tom Lee stocks remained bullish. He said if the market finds its position “we are in a world of double-digit expected returns.”
“This week is interesting because stock market declines have accelerated downwards, so waterfalls are accelerating, but things that would not normally support a fall or yield like VIX,” Lee told CNBC’s “Closing Bell: Overtime.” “The bond market was actually quite stable even in the face of a heated CPI and the VIX was actually falling.”
He noted that the market had declined 16% in the four months between 1940 and 16 times, six months after it was higher in 12 events.
SoftBank Bell is set to report earnings on Thursday morning. Sure, poshmark and toast are called after hours.
In economic data, investors will look for the latest in unemployment claims, which will be released at 8:30 p.m. They are also waiting for new data from the producer price index, which measures prices at the wholesale level.