A trader works on the New York Stock Exchange (NYSE) on August 19, 2021.
Andrew Kelly | Reuters
Stock futures gained overnight trading on Wednesday after a rebound on Wall Street as the market tried to avert the seasonally weak September.
Futures on the Dow Jones Industrial Average rose 30 points. S&P 500 futures and Nasdaq 100 futures gained 0.1% each.
Moderna gained slightly in expanded trade after the company released more data on groundbreaking Covid cases, backing up pressure on vaccine booster vaccination widespread use.
The S&P 500 rose 0.9% on Wednesday while the energy sector rose 3.8%, making its largest daily rise since August 27th. The blue-chip Dow rose more than 200 points while the tech-heavy Nasdaq Composite rose 0.8%.
After seven straight months of profits for the S&P 500 and this year's rally of nearly 20% to record highs, many on Wall Street are expecting bumpier trading and lower returns for the remainder of the year. History isn't good for the market either, as September is usually a negative month for stocks. According to the CFRA, the S&P 500 has fallen 0.56% on a monthly average since 1945.
"It is getting harder and harder to climb the wall of worry as the depth and breadth of worry grow and the market is potentially tired," said Mark Hackett, chief of investment research at Nationwide.
So far this month the 30-share Dow is down 1.6% while the S&P 500 is down 0.9% on its way to its worst monthly performance since January. The Nasdaq is down 0.6% this month.
"The stressors facing the market have not changed significantly, including the delta variant, revenue headwinds from supply chain and workforce challenges, fiscal and monetary tailwinds shifting to headwinds, and bubbling worries about China" said Hackett.
Investors will monitor the latest data on unemployment claims on Thursday. Economists polled by Dow Jones expect a total of 320,000 Americans to apply for unemployment insurance in the week ended September 11, up from 310,000 the week before.
Traders are also preparing for a possible spike in volatility on Friday. The so-called Quadruple Witching takes place at the end of the week, as stock and index futures and options expire on the same day.