Futures for the main stock indexes retreated before the market opened on Wednesday, continuing to fall after a tech selloff in the previous session. Minutes from the Federal Reserve’s last meeting and earnings from big-name retailers could push them in either direction later in the day.
Investors will be looking for insight into the Fed’s thinking as expectations for an interest-rate cut solidify. There’s an overwhelming consensus for a quarter-point move on Sept. 17, but the bigger question is what happens after that.
As Fed Chair Jerome Powell prepares to speak in Jackson Hole, Wyoming on Friday, the market is almost evenly split on whether the Fed drops its benchmark by 0.25 point or 0.5 point by the end of the year. There’s also a slim chance of no more moves at all, according to the CME FedWatch tool.
Mass market retailers Target and TJX report earnings today, as does home improvement story Lowe’s. Walmart, the biggest U.S. retailer by revenue, and Ross Stores release results tomorrow. Home Depot, which competes with Lowe’s, impressed investors by maintaining its guidance for the year, though it also warned that higher interest rates are discouraging Americans from moving.
Traders are also waiting to see what happens next in the Russia-Ukraine conflict. President Donald Trump is trying to broker a meeting between the leaders of the two countries, though it’s not clear when or if that will happen. Oil prices were slightly higher early in the day, with West Texas Intermediate trading up 1% at $63 a barrel.
Dow Jones Industrial Average futures fell 105 points, or 0.2%. S&P 500 futures were down 0.3%, while Nasdaq 100 futures fell 0.4%. The Dow finished slightly higher yesterday, but the other two lost ground, dragged down by Big Tech stocks such as Palantir Technologies.
The yield on the 10-year Treasury slipped to 4.31%, compared with 4.347% 24 hours ago. The two-year yield was little changed at 3.769%.