S&P 500 and Nasdaq 100: Futures Steady as Fed Minutes and Powell’s Speech Loom

Stock Futures Mixed as Investors Await Fed Minutes

U.S. stock futures showed slight gains on Wednesday as traders anticipated the release of minutes from the Federal Reserve’s latest policy meeting. Investors are eager to gain insights into the likelihood of an interest rate cut in September.

The modest rise in futures follows a mixed session on Tuesday, where the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all recorded losses. The S&P 500 dropped by 0.2%, the Nasdaq fell 0.33%, and the Dow decreased by 0.15%.

The market’s attention is now firmly on the Fed’s minutes and the upcoming Jackson Hole Economic Symposium, which could offer more clues about the central bank’s next moves.

At 12:45 GMT, Dow Futures are trading 41025.00, up 76.00 or +0.19%. The S&P 500 Index is at 5632.00, up 12.25 or +0.22% and the Nasdaq-100 Index is trading 19856.00, up 46.50 or +0.23%.

Retail Stocks in Focus

In premarket trading, Target’s shares surged nearly 14% after the retailer reported stronger-than-expected earnings for its fiscal second quarter. The company posted earnings of $2.57 per share on revenue of $25.45 billion, surpassing analysts’ expectations. However, Target maintained a cautious outlook for the full year. Conversely, Macy’s saw its stock fall over 6% after it reduced its full-year sales forecast, citing a challenging retail environment with selective shoppers and increased promotions.

Tech and Consumer Stocks See Movement

Among other notable premarket moves, JD.com’s shares dropped more than 8% following Walmart’s announcement that it was selling its stake in the Chinese tech company. On the other hand, Texas Instruments gained nearly 2% after receiving an upgrade from Citi, which highlighted the potential for improved operating margins in the coming quarters. Similarly, Corning shares rose 1.7% after Mizuho upgraded the stock, pointing to an attractive entry point for investors.

Fed Meeting Minutes and Jackson Hole Symposium Awaited

Market participants are focused on the Fed’s July meeting minutes, with the central bank leaving rates unchanged at the time but hinting at a possible rate cut in September. The recent data, including robust retail sales and a weaker-than-expected inflation report, has eased some recession fears, making the Fed’s next steps a focal point for traders. According to the CME Group’s FedWatch tool, markets are pricing in a 69.5% chance of a 25 basis point cut in September.

Market Outlook

As the Fed minutes and Jackson Hole Symposium unfold, the tone of Fed Chair Jerome Powell’s remarks will be crucial. With inflation trending toward the 2% target and signs of a softening labor market, a dovish outlook from Powell could support a bullish short-term trend in equities. However, caution remains as traders weigh the ongoing economic uncertainties.

Technical Analysis

E-mini Nasdaq-100 Index futures are holding steady above the 50-day moving average at 19677.96 on Wednesday. This is the key support level that could launch the tech-heavy index to 20983.75, the record high, over the near-term. If it fails as support then look for a sell-off into the nearest pivot at 19167.50. Buyers are likely to show up on a test of this level since it represents value.