Futures inch lower, FedEx cuts annual revenue forecast - what's moving markets
Investing.com -- Futures edge lower on Wednesday, suggesting a slight pullback on Wall Street following a surge in stocks in the prior session that was fueled by expectations for potential Federal Reserve interest rate cuts in early-2024. Elsewhere, FedEx shares dip premarket after the delivery giant slashes its annual revenue outlook, while Toyota (TYO:7203) (NYSE:TM) temporarily suspends shipments of its Daihatsu brand cars as a scandal over rigged safety tests deepens.
1. Futures inch down
U.S. stock futures were in the red on Wednesday, pointing to a possible breather in a multi-week rally in equities driven by hopes for interest rate cuts by the Federal Reserve early next year.
By 05:00 ET (10:00 GMT), the Dow futures contract had shed 29 points or 0.1%, S&P 500 futures had dipped by 8 points or 0.2%, and Nasdaq 100 futures had fallen by 50 points or 0.3%.
The main averages jumped in the prior session, fueled by mounting bets that the Fed will start to lower borrowing costs from 22-year highs as soon as March.
Several officials at the U.S. central bank have attempted to temper these expectations in recent days. On Tuesday, Atlanta Fed President Raphael Bostic noted that there is «no urgency» to begin reducing rates due to the resilience of the broader economy and the slow pace at which inflation is easing back down to the Fed's stated 2% target.
Yet exhuberance amongst traders has showed few signs of abating. There is now a more than 72% chance that the Fed will roll out a 25 basis point cut in March, up from 43% last week, according to Investing.com's Fed Rate Monitor Tool.
2. FedEx slumps premarket
Shares in FedEx (NYSE:FDX) slipped in premarket trading in New York on Tuesday after the deliveries group slashed
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