Futures point lower, WeWork files for bankruptcy - what's moving markets
Investing.com -- U.S. futures drop as traders attempt to gauge the staying power of a recent rally on Wall Street. WeWork files for bankruptcy following a post-COVID downturn in demand for office space, while UBS reports its first quarterly loss since 2017 on expenses tied to its shotgun marriage with rival Credit Suisse.
1. Futures slip
U.S. stock futures dipped on Tuesday, pointing to some pullback from recent gains, as investors weighed the relative strength of the rally.
By 04:58 ET (09:58 GMT), the Dow futures contract had shed 88 points or 0.3%, S&P 500 futures lost 11 points or 0.3%, and Nasdaq 100 futures slid by 32 points or 0.2%.
The main indices on Wall Street ended the prior session in the green, with both the benchmark S&P 500 and 30-stock Dow Jones Industrial Average posting their first six-day winning streak since the summer. The tech-heavy Nasdaq Composite also rose to its seventh-consecutive positive session.
Stock markets reopened on Monday after finishing up their best week of the year so far on Friday, boosted by hopes that the Federal Reserve may soon move to cut interest rates. However, traders are still eyeing a relatively uncertain outlook for both growth and inflation as they attempt to assess the U.S. central bank's policy path.
2. WeWork files for bankruptcy
WeWork (NYSE:WE) has filed for bankruptcy in a New Jersey court, as the flexible co-working space provider founded by Adam Neumann and backed by SoftBank (TYO:9984) grapples with a post-pandemic downturn in office occupancy and expensive leases.
In a statement on Monday, WeWork said it was moving to reorganize its operations to strengthen its capital structure and financial performance, adding that it has the backing of its stakeholders
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