Dow futures edge lower; economic weakness, oil prices weigh on sentiment
Investing.com — U.S. stock futures traded lower Wednesday, continuing the previous session’s selloff as stronger oil prices and global economic weakness weigh on sentiment.
By 06:35 ET (10:35 GMT), the Dow Futures contract was down 35 points, or 0.1%, S&P 500 Futures traded 7 points, or 0.2%, lower and Nasdaq 100 Futures dropped 40 points, or 0.3%.
The blue-chip Dow Jones Industrial Average closed almost 200 points, or 0.6%, lower on Tuesday, the start of a holiday-shortened week, while the tech-heavy Nasdaq Composite dropped 0.1% and the broad-based S&P 500 fell 0.4%.
Weighing on global sentiment this week has been a sharp rise in oil prices after major producers Saudi Arabia and Russia unexpectedly extended their voluntary supply cuts to the end of the year.
Although crude has slipped back Wednesday, with the WTI contract 0.3% lower at $86.42 a barrel and the Brent contract down 0.5% to $89.61, investors are concerned that the jump in oil prices to their highest level this year with have an impact on inflation and thus how the Federal Reserve will move interest rates going forward.
The Fed is widely seen as holding off on another interest rate increase in September, with Governor Christopher Waller saying on Tuesday the latest round of economic data was giving the U.S. central bank space to see if it needs to raise interest rates again.
There is more data due Wednesday, including the Fed's Beige Book survey of its 12 district banks which will provide investors with an on-the-ground glimpse at economic conditions around the country.
The ISM non-manufacturing purchasing managers' index is projected to come in at 52.5 in August, down from 52.7 in the prior month. This figure serves as a gauge of activity in the services
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