US pre-open: Futures lower as Powell dashes hopes for March interest rate cut

US stock futures were in the red ahead of the bell on Monday following comments from Federal Reserve chairman Jerome Powell.

As of 1230 GMT, Dow Jones futures were down 0.15%, while S&P 500 and Nasdaq Composite futures had the indices opening 0.22% and 0.14% lower, respectively.

The Dow closed 134.58 points higher on Friday on the back of a stronger-than-expected January jobs report and earnings beats from the likes of Microsoft and Meta Platforms.

However, futures headed south on Monday morning as Powell dashed hopes for any near-term interest rate cuts, echoing comments made by the head of the central bank at its most recent monetary policy meeting.

"We want to see more evidence that inflation is moving sustainably down to 2%," Powell said. "Our confidence is rising. We just want some more confidence before we take that very important step of beginning to cut interest rates."

On the macro front, S&P Global's January composite and services PMIs will be published at 1445 GMT, while the Institute of Supply Management's services PMI will follow at 1500 GMT.

Elsewhere, Federal Reserve bankers Austan Goolsbee and Raphael Bostic will deliver speeches at 1500 GMT and 1900 GMT, respectively.

In the corporate space, fast food giant McDonald's said conflict in the Middle East hit sales in the region and led to mixed fourth-quarter results, while Loews posted strong growth in revenues during Q4 on the back of higher premiums.

Estée Lauder beat earnings per share estimates by $0.34, while revenues topped estimates for its most recent quarter.

Still to come, Western Union and H&R Block will report earnings after the close.

Reporting by Iain Gilbert at Sharecast.com