Futures inch lower, U.S. services data looms - what's moving markets

investing.com:

Investing.com -- U.S. stock futures decline as investors gauge the outlook for Federal Reserve monetary policy and digest extended supply cuts by major oil producers Saudi Arabia and Russia. Elsewhere, new data later in the session on Wednesday will provide a look into the state of the key U.S. services sector, while China's Tencent prepares to unveil a new AI chatbot.

1. Futures edge down

U.S. stock futures pointed lower on Wednesday after a losing session marked the beginning of a holiday-shortened trading week.

By 05:24 ET (09:24 GMT), the Dow futures contract dipped by 64 points or 0.2%, S&P 500 futures lost 12 points or 0.3%, and Nasdaq 100 futures shed 67 points or 0.4%.

The main indices on Wall Street posted losses on Tuesday, while the dollar touched a six-month high and government bond yields inched up, as traders attempted to suss out the future path of interest rates.

Fed official Christopher Waller suggested that the U.S. central bank is set to keep borrowing costs steady at its policy meeting this month. He added that the probability of a so-called «soft landing» is growing, a trend that could convince the Fed to refrain from cutting rates any time soon.

The comments added fuel to speculation that U.S. interest rates may need to stay «higher for longer» in response to ongoing resilience in the broader economy.

2. Oil reverses course after touching $90

Oil prices slipped on Wednesday, but still hovered around nine-month highs, weighed down by a stronger dollar and the waning impact of new supply cuts from two major crude producers.

Saudi Arabia is due to extend its output cut of 1 million barrels per day (bpd) until the end of December, according to a report from a state news agency. Separately, Russia's