US pre-open: Futures in the red after Nasdaq notches up another fresh record close

Wall Street futures were in the red ahead of the bell on Wednesday after the Nasdaq Composite saw out the previous session at yet another fresh record high.

As of 1240 BST, Dow Jones futures were down 0.07%, while S&P 500 futures were 0.13% lower and Nasdaq-100 futures were 0.12% weaker.

The Dow closed 68.61 points higher on Tuesday, extending gains recorded in the previous session, while the S&P fell just short of a record close.

While markets searched for direction prior to the open on Wednesday, testimony from Federal Reserve Chairman Jerome Powell before the House of Representatives on Tuesday was still on investors' minds, with his reiterated that inflation pressures would only be temporary listing sentiment somewhat.

Also in focus, bitcoin was up 4% ahead of the bell and over $34,000 after having fallen more than 11% in the previous session to dip below $30,000 and erase all of its gains for 2021.

On the macro front, mortgage applications increased 2.1% on an adjusted basis in the week ended 18 June 18, according to data from the Mortgage Bankers Association's weekly mortgage applications survey. On an unadjusted basis, the index increased 1% week-on-week, while the refinance index increased 3% but was 9% lower than the same week a year ago.

"Mortgage rates increased last week, with the 30-year fixed rate rising to 3.18% - the highest level in a month. Despite the jump in rates, refinances increased for the second consecutive week, pushed higher by a 4% bump in conventional refinance applications," said Joel Kan, MBA's associate vice president of economic and industry forecasting.

"Purchase applications have regained an upward trend over the past few weeks. Activity was slightly higher for the third straight week, but remained lower than the same week a year ago. Government purchase applications drove most of last week's increase, which also contributed to a slightly lower overall average purchase loan size."

Still to come, a flash reading of IHS Markit's June manufacturing PMI will be released at 1445 BST, while new home sales data for May will follow at 1500 BST.

Federal Reserve presidents Raphael Bostic and Michelle Bowman will deliver speeches throughout the course of the day.

In the corporate space, Winnebago will report earnings before the open, while KB Home will update the market on its recent trading after the close.