U.S. stock futures inch lower ahead of Fed minutes; Jackson Hole in focus

Investing.com-- U.S. stock index futures fell slightly Wednesday as Wall Street remained largely risk-averse in anticipation of more economic and central bank cues from the Jackson Hole Symposium this week.

At 05:40 ET (09:40 GMT), Dow Jones Futures slipped 72 points, or 0.2%, S&P 500 Futures dropped 7 points, or 0.1%, and Nasdaq 100 Futures fell 33 points, or 0.1%.  

The major indices closed in a mixed fashion Tuesday, with the S&P 500 falling 0.6% and the NASDAQ Composite dropping 1.5%, while the Dow Jones Industrial Average closed marginally higher.

Technology shares were the worst-hit by uncertainty over monetary policy, as investors locked-in recent profits in the sector. Reports that the U.S. government was considering taking equity stakes in major chipmakers also weighed on the sector. 

Fed minutes due before Jackson Hole 

Investors are also adapting a cautious stance over just what Federal Reserve Chair Jerome Powell will signal at the Jackson Hole conference this week.

Powell is set to speak on Friday, with his address coming amid growing expectations that the Fed will cut interest rates in September. These were driven by data showing some cooling in the labor market and consumer inflation. 

President Trump also kept up his criticism of Powell on Tuesday, chiding the Fed Chair for being “too late” in cutting interest rates.

That said, investors may not have to wait until then for clues about the central bank’s next move as the minutes of the last meeting are due later in the session.

The Fed has maintained its policy rate in the 4.25%-4.50% range for all of this year, with some policymakers, and Powell in particular, expressing worries that the Trump administration’s tariffs could reignite inflation.

These minutes could show how deep divisions run after Governors Christopher Waller and Michelle Bowman dissented at the last meeting, marking the first time two voting Fed officials have done so since 1993.

Retail earnings due 

Before Powell’s address, the focus is on a host of major retailer earnings for more cues on the U.S. consumer.

TJX Companies (NYSE:TJX), Lowe’s Companies (NYSE:LOW) and Target Corporation (NYSE:TGT) are set to report June quarter earnings on Wednesday, followed by Walmart (NYSE:WMT) on Thursday.

Outside retail, Wall Street majors including Analog Devices (NASDAQ:ADI), Intuit (NASDAQ:INTU) and Workday (NASDAQ:WDAY) are set to report earnings in the coming days.

U.S. companies have posted their strongest earnings beats in more than three years during the second quarter, according to an analysis by Jefferies, adding that the “difference between actual & consensus earnings growth is 12.3%, the widest spread since 1Q’22.” 

Crude rises 

Oil prices rose Wednesday, bouncing after the previous session’s losses as traders awaited fresh news over the next steps to end the war in Ukraine.

At 05:40 ET, Brent futures gained 1.1% to $66.50 a barrel, and U.S. West Texas Intermediate crude futures rose 1.2% to $62.53 a barrel.

Prices settled down more than 1% on Tuesday on optimism that a deal to end the war seemed closer, which would likely lead to an easing of sanctions on Russia and an increase in global supply.

Ambar Warrick contributed to this article