Stock futures slipped in early pre-market trading on Wednesday as Wall Street adopted a cautious stance ahead of two major market-moving events: The release of the Federal Reserve’s latest meeting minutes and a fresh batch of earnings from major retailers.
Futures tied to the Dow Jones Industrial Average fell 75 points, or about 0.2%. S&P 500 futures dipped 0.1%, and Nasdaq 100 futures were down 0.2%, signaling a potentially lower open for the market.
The muted trading follows a mixed session on Tuesday where a post-earnings jump from Home Depot helped the Dow hit an intraday record, while weakness in tech shares pulled the S&P 500 and Nasdaq lower.
A Look at Pre-Market Movers
Here’s a snapshot of the market before the opening bell:
- Dow Futures: -75 points (-0.2%)
- S&P 500 Futures: -0.1%
- Nasdaq 100 Futures: -0.2%
- Intel (INTC) and Micron (MU) shares were down over 1% and 3% respectively in the pre-market following a report that the U.S. government is considering taking equity stakes in chipmakers in exchange for CHIPS Act grants.
- La-Z-Boy (LZB) shares tumbled more than 20% in after-hours trading Tuesday after the furniture maker posted weaker-than-expected earnings and guidance.
All Eyes on the Federal Reserve
Investors are keenly awaiting the minutes from the Fed’s July policy meeting, scheduled for release at 2:00 p.m. ET. Market participants will scrutinize the text for clues about the central bank’s future interest rate path.
While policymakers held rates steady in July, the meeting was notable for having two dissenting officials, suggesting a growing debate within the committee. Currently, the market is pricing in a nearly 85% probability of an interest rate cut at the Fed’s next meeting in September, according to the CME FedWatch Tool. The upcoming minutes could either reinforce or challenge that expectation.
Retail Earnings Take Center Stage
Before the Fed takes the spotlight, a wave of retail earnings will give investors insight into the health of the consumer. Target (TGT), Lowe’s (LOW), and TJX Companies (TJX) are all scheduled to report their quarterly results before the bell.
These reports will be closely watched after Home Depot’s strong results buoyed the Dow on Tuesday. The performance of these retail giants could set the tone for the market’s direction throughout the morning session.