Dow futures retreat after Fed Waller comments; retail sales, earnings in focus
Investing.com — U.S. stock futures fell Wednesday, retreating on renewed concerns that Federal Reserve interest rate cuts could still be some time away, while the earnings season continues.
By 06:25 ET (11:25 GMT), the Dow Futures contract was down 165 points, or 0.5%, S&P 500 Futures traded 20 points, or 0.4%, lower and Nasdaq 100 Futures dropped 100 points, or 0.6%.
The main U.S. averages closed lower on Tuesday, the first day of this holiday-shortened week. The blue chip Dow Jones Industrial Average fell over 200 points, or 0.6%, following mixed earnings from Wall Street giants Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS). The broad-based S&P500 also fell 0.4%, while the tech-heavy Nasdaq Composite slipped 0.2%.
Sentiment was hit after Federal Reserve Governor Christopher Waller indicated that while interest rate cuts were likely to happen this year, the central bank was not considering any in the near-term, citing continued resilience in the U.S. economy.
In a speech at the Brookings Institution in Washington, D.C. on Tuesday, Waller noted that economic activity and labor markets in the U.S. are in «good shape,» while inflation is coming down «gradually» to the Fed's stated 2% target.
Because of these trends, Waller argued, he «see[s] no reason to move as quickly or cut as rapidly as in the past.»
U.S. Treasury yields climbed higher, with the yield on the 10-year Treasury note marching back above 4%, as traders reduced the chances of a March start to rate cuts to around 60%, from about 73% before Waller spoke.
There is more Fedspeak due Wednesday, including from New York Fed’s John Williams, as well as economic data in the form of the Fed’s Beige Book and business inventories for November.
However, most
Read more on investing.com
