United States stock futures traded within a narrow range on Tuesday evening (Wednesday AEST), with investors awaiting a fresh round of retail earnings and the release of Federal Reserve minutes that could provide clues on the outlook for monetary policy.
By 9:30 am AEST (11:30 pm GMT) Dow Jones Industrial Average, S&P 500 and Nasdaq 100 futures were all little changed, fluctuating within a tight ±0.1% band.
The muted moves followed a mixed session in which the S&P 500 and Nasdaq Composite slipped 0.6% and 1.5%, respectively, while the Dow managed a marginal gain, supported by a post-results rally in Home Depot.
Attention is firmly on the Fed’s July meeting minutes, due later in the day. Policymakers left rates unchanged at that meeting, but dissenting votes from Governors Christopher Waller and Michelle Bowman, marking the first double dissent since 1993, highlighted divisions within the central bank.
The minutes will be parsed for signals on how policymakers are weighing the path of rates ahead of Fed Chair Jerome Powell’s speech on Friday, which investors hope will offer clarity.
According to CME Group FedWatch Tool, markets are pricing in nearly an 86.1% chance of a quarter-point rate cut at the September policy meeting.
Meanwhile, traders are also focused on the retail sector. Earnings from Lowe’s, Target and TJX Companies are scheduled before Wednesday’s opening bell.
