Iain Gilbert Sharecast News
03 Jul, 2024 12:05 03 Jul, 2024 12:05

US pre-open: Futures little changed following yesterday's gains

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New York Stock ExchangeSharecast photo / Josh White

Wall Street futures were little changed ahead of the bell on Wednesday as traders prepare for the 4th of July break.

As of 1205 BST, Dow Jones futures were up 0.15%, while both S&P 500 and Nasdaq-100 futures had the indices opening 0.04% firmer.

The Dow closed 162.33 points higher on Tuesday following comments from Federal Reserve president Jerome Powell before the European Central Bank forum.

AJ Bell's Russ Mould said: "Jerome Powell has developed a reputation for refusing to categorically state something will happen, which means the market has to interpret what they think he is saying. In a speech on Tuesday, Powell said the US was back on a 'disinflationary path' but added that more data was required before the Fed would consider cutting rates.

"The latter phrase sounds a bit like a broken record as far as the market is concerned, so the most important part of Powell’s speech was the reference to disinflation, as investors interpreted it to mean there is a stronger case for cutting rates soon. That was enough to trigger a risk-on rally in the markets, with investors bidding up shares in the US, and for the dollar to fall."

On the macro front, mortgage applications fell 2.6% in the week ended 28 June, according to the Mortgage Bankers Association of America.

Still to come, Challenger job cuts data will be published at 1230 BST, while weekly jobless claims numbers and goods trade balance will be out at 1330 BST, S&P Global's June composite PMI was due at 1445 BST, and May factory orders and last month's ISM services PMI will follow at 1500 BST.

In the corporate space, Paramount shares traded higher prior to the open on the back of reports that Skydance Media has struck a preliminary agreement to snap up controlling shareholder National Amusements.

Markets will close early on Wednesday and remain closed throughout Thursday in observance of the Independence Day holiday.

Reporting by Iain Gilbert at Sharecast.com

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