Stock futures dip following two straight days of gains on Wall Street

cnbc.com:

Stock futures fell marginally in overnight trading Tuesday after two consecutive days of gains on Wall Street.

Futures on the Dow Jones Industrial Average dipped 55 points. S&P 500 futures and Nasdaq 100 futures both declined just 0.2%.

Investors shrugged off some signs of an economic slowdown ahead of a key inflation reading. The S&P 500 gained nearly 1%, rising for a second straight day. The 30-stock Dow advanced more than 260 points, Tuesday, while the tech-heavy Nasdaq Composite rose 0.9%.

Target cut its profit guidance on Tuesday, saying it plans to get rid of excess inventory. The development highlighted risks about economic growth amid surging inflation. Meanwhile, the Atlanta Federal Reserve's GDPNow tracker showed a growth rate of just 0.9% for the second quarter, down from 1.3% last week.

"[The] market could continue to reflect concerns around financial conditions tightening and earnings growth slowing," Lauren Goodwin, economist and portfolio strategist at New York Life Investments, said in a note.

All eyes will be on Friday's consumer price index reading for May. Many believe the print will be crucial for the path of Fed policy and whether the central bank will keep raising rates in 50-basis-point increments.

The stock market has had a roller-coaster year as the Fed's aggressive rate hikes stoked recession fears. The S&P 500 is off nearly 14% from its all-time high reached in January. The equity benchmark briefly dipped into bear market territory on an intraday basis last month.

«The question is whether this slower implied pace of tightening is attributable to the belief that the Fed will meet its policy goals or because the economy will be tipping into recession,» said Gargi Chaudhuri, head of iShares