Wall Street’s major index futures were near steady on Wednesday, as investors showed caution ahead of the release of revised U.S. employment data and minutes from the Federal Reserve’s latest monetary policy meeting.
The Labor Department report will be released at 11 a.m. (Brasilia time). Most economists expect a downward revision, with Goldman Sachs predicting that 600,000 to 1 million fewer jobs will be created from April 2023 to March 2024.
“A stronger number would not change the Federal Reserve’s easing trajectory much, as the latest employment data already suggests a cooling labor market,” ING strategists wrote in a morning note.
The minutes of the Fed’s July meeting will also be released later, while traders are still awaiting Chairman Jerome Powell’s speech at the Jackson Hole economic symposium on Friday.
“We expect the Fed chair to continue to signal that a first rate cut is due in September. However, there is a chance investors will be disappointed by the comments if they refer to inflation stickiness,” said Guy Stear, head of developed markets strategy at Amundi Investment Institute.
According to CME’s FedWatch tool, financial markets are currently pricing in a 69.5% probability of a 25 basis point interest rate cut by the Fed in September, with a 30.5% probability of a 50 basis point cut.
S&P 500 futures rose 0.2%, while Nasdaq 100 futures contracts rose 0.23% and Dow Jones futures rose 0.13%.
Wall Street’s major indexes closed slightly lower on Tuesday, snapping recent streaks of gains.
Source: Terra
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