US STOCKS-Wall Street futures tick lower after mixed policy signals from Fed

Published 19/09/2019, 12:44
Updated 19/09/2019, 12:50
US STOCKS-Wall Street futures tick lower after mixed policy signals from Fed

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* Futures down: Dow 0.21%, S&P 0.23%, Nasdaq 0.40%

By Ambar Warrick

Sept 19 (Reuters) - U.S. stock index futures were lower on

Thursday after the Federal Reserve delivered a widely expected

interest rate cut but played down hopes of further monetary

easing.

New projections showed policymakers at the median expected

interest rates to stay within the new range through 2020,

disappointing investors who were hoping for additional cuts to

help blunt the economic fallout from the U.S.-China trade war.

Prolonged trade tensions between the world's two largest

economies have roiled equity markets and raised concerns about

slowing global growth, leading to stimulus actions from several

major central banks.

U.S. and Chinese deputy trade officials are set to resume

face-to-face talks on Thursday for the first time in nearly two

months, aiming to lay the groundwork for high-level negotiations

planned in early October.

Wall Street indexes ended slightly higher on Wednesday after

the central bank's monetary policy announcement. Expectations of

lower borrowing costs have supported U.S. stocks through the

year, with the S&P 500 benchmark index .SPX trading less than

1% below a record high hit in July.

At 7:11 a.m. ET, Dow e-minis 1YMcv1 were down 56 points,

or 0.21%. S&P 500 e-minis EScv1 were down 7 points, or 0.23%

and Nasdaq 100 e-minis NQcv1 were down 31.5 points, or 0.4%.

Microsoft Corp MSFT.O and retailer Target Corp TGT.N

rose 1% and 2.1%, respectively, in premarket trading, after the

companies announced share buyback programs and quarterly

dividends. Content delivery network provider Akamai Technologies Inc

AKAM.O was down 2.6% after KeyBanc analysts downgraded the

stock to "sector weight" from "over weight". On the economic front, data at 8:30 a.m. ET is likely to

show a reading of 11 on the Philadelphia Fed business activity

index for September, down from 16.8 in August.

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