Stock futures in the United States signaled further declines on Wednesday as investors eagerly awaited a speech by Federal Reserve Chair Jerome Powell. The focus of the market is on Powell’s remarks expected to provide insights on the trajectory of interest rates in the coming months.
S&P 500 futures slipped 0.2%, while Dow Jones Industrial Average futures remained just below the flatline. Nasdaq 100 futures led the declines, down nearly 0.4% following the market’s recent downturn. Investors have started to reevaluate their expectations for Fed rate cuts after robust economic data suggested a shift in policy direction.
Investors are keenly watching Powell’s speech for signals on whether the Fed’s upcoming June meeting will result in a policy pivot. Comments from other Fed officials, including Michael Barr, will also be closely monitored for any hints on future monetary policy decisions.
In addition to the Fed’s outlook, the market is keeping a close eye on the ongoing proxy battle between Disney and activist investor Nelson Peltz. Sources suggest that Disney may have garnered enough support to thwart Peltz’s proposed board shake-up.
Individual stocks like Intel and TSMC are seeing movement in premarket trading. Intel shares fell around 5% after the company reported sharper operating losses in its foundry business. On the other hand, TSMC faced disruptions in chipmaking due to a recent earthquake in Taiwan, sparking concerns about its supply chain for tech giants like Apple and Nvidia.
As the market continues to react to various developments, investors remain cautiously optimistic about the future trajectory of interest rates and corporate landscapes. The outcome of Powell’s speech and other key events in the market will likely shape trading activity in the days ahead.