US pre-open: Stocks seen down after hawkish Fed, ahead of jobs data

At 1230 BST, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all down 0.4%.

Joshua Mahony, chief market analyst at Scope Markets, said: "It may have been a bumper first half to the year but Wall Street seemingly returned after the 4th July break carrying something of a hangover, with the FOMC meeting minutes doing little to soothe the pain. The hawkish tone and clear division over the call to leave rates unchanged last month left stocks lower and bonds in favour, with futures extending the sell-off overnight.

"There’s mounting support for the idea that the US can avoid recession despite the aggressive tactics from the Fed, but today’s ADP Payroll survey will be under scrutiny as traders look for clues as to the pace of any economic normalisation. The JOLT job openings are also published today and again this could be a telling print if there’s a meaningful undershoot.

"Earnings news remains subdued although Levi Strauss is due to report after the close and again that could offer some insight when it comes to consumer discretionary demand."

Mahony called the Dow down 150 points at 34,139 and the S&P down 21 at 4,426.

On the macro front, the ADP employment report is at 1315 BST and initial jobless claims at 1330 BST.

In corporate news, Meta was likely to be in focus after it launched Threads - a rival to Twitter.

Victoria Scholar, head of investment at Interactive Investor, said: "No doubt there will be bumps in the road, but the injection of some healthy competition will be a welcome development for consumers and could provide support to Meta’s share price if Threads turns out to be a success, as its huge number of initial sign ups suggests."