US pre-open: Stocks seen lower ahead of Powell speech

US stock futures pointed to more losses on Wall Street on Wednesday amid growing doubts over rate cuts, as investors eyed a speech by Federal Reserve chair Jerome Powell.

At 1130 BST, Dow Jones Industrial Average and S&P 500 futures were down 0.1% and 0.2%, respectively, while Nasdaq futures were 0.3% lower.

Joshua Mahoney, chief market analyst at Scope Markets, said: "US traders will be treading with caution today, with an appearance from Jerome Powell posing additional risks within a week that has already been dominated by selling pressure.

"Comments from Fed member Mary Daly highlighted the patient approach taken by many, stating that she sees no current need for urgency to adjust the Fed Funds rate. With markets currently looking for a rate cut in June, markets will be highly sensitive to Powell’s comment as he likely uses this opportunity to shape those expectations in one way or another."

Powell is due to make a speech at Stanford.

Aside from his speech, investors will also be eyeing the latest ADP employment report at 1315 BST, and the ISM services index at 1500 BST.

On the corporate front, earnings are due from Levi’s after the market close.