Stock futures rise Wednesday to start a new month of trading: Live updates

China economic data helping to boost markets

Strong data out of China boosted hopes the country’s economy was returning to growth after loosening up Covid lockdown rules. China’s official manufacturing purchasing managers’ index rose to 52.6 in February, a second-straight month of expansion and the fastest pace since April 2012.

Hong Kong’s Hang Seng index soared more than 4% in response to the data and U.S. futures were boosted overnight.

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Dow Jones futures – 1-day

Rebecca Patterson is looking to defensives, T-bills for near-term market insurance

Rebecca Patterson, known for her earlier leadership at Bridgewater, is preparing for a near-term market downturn.

In order for the Federal Reserve to ease its interest rate-hiking campaign, Patterson said there needs to be a lot more economic weakness and inflation will likely need to be brought down to the Fed’s target level or below—both of those scenarios having “low probabilities.” 

“I do think we’re looking at equity market downside later this year and I would be watching that interplay between the consumer, companies and the labor market, and, of course, the Fed and those borrowing costs,” Patterson, the former Chief Investment Strategist at Bridgewater Associates, said Tuesday on CNBC’s “Fast Money.”

The strategist added that the consumer is growing cautious, which she said could bode poorly for companies–increasing the risk of layoffs and hit on earnings–if they start spending less. 

For near-term insurance, Patterson said she is investing in the six-month U.S. Treasury bill and is starting to invest modestly in defensive stocks. She noted that six-month Treasury yields rose to 5.14% on Tuesday, reaching its highest return rate since 2007.

Patterson published an op-ed on CNBC.com Tuesday about the three drivers she sees as potentially shaping the future of the U.S. economy.

— Pia Singh

How the major indexes performed in February

Tuesday’s closed marked the end of February’s trading month. Here’s how the three major indexes performed in the month:

That marks a turn from January’s rally as investors tried to shake off 2022’s downturn. February’s slide pushed the Dow below where it started the year, while the S&P 500 and Nasdaq Composite are still holding on to some of what each gained in January.

— Alex Harring

Stocks making the biggest moves after hours

These are the stocks making the biggest moves after the bell:

See the full list here.

— Alex Harring

Stock futures open down

The three major futures indexes opened in the red.

Nasdaq 100 futures led the way down, dropping 0.3%. Futures tied to the S&P 500 and Dow slid 0.2% and 0.1%, respectively.

— Alex Harring