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 day since June.

Futures tied to the Dow Jones Industrial Average added 27 points, or 0.1%, while S&P 500 and Nasdaq 100 futures also gained 0.1% and 0.2%, respectively.

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.

“This bear in our view has one last act,” read a note from Morgan Stanley Wealth Management’s Lisa Shalett, recommending investors stay diversified.

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.

Tech stocks recovered somewhat from Monday’s rout. Megacap companies Amazon and Apple were up 0.53% and 0.28% in Tuesday premarket trading, respectively.

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.