U.S. stock index futures showed modest gains in evening trading on Wednesday, extending the positive momentum from Wall Street. This uptick followed the release of the Federal Reserve’s recent meeting minutes, which bolstered expectations that the central bank will implement rate cuts soon.
Futures Movements:
S&P 500 Futures: Held steady at 5,463.0 points.
Nasdaq 100 Futures: Rose 0.1% to 19,927.50 points.
Dow Jones Futures: Remained flat at 41,019.0 points.
The minutes from the Fed’s late-July meeting, released on Wednesday, revealed a growing consensus among policymakers in favor of lowering interest rates. The dovish tone of the minutes intensified market expectations for a rate cut, with September now widely anticipated as the start date. Analysts are divided on whether the cut will be 25 or 50 basis points.
Market Reaction:
Wall Street saw incremental gains following the minutes’ release, supported by labor data that indicated slower-than-expected employment growth this year. A cooling labor market, a critical factor for the Fed, further supported the likelihood of a rate cut.
Citi analysts project a 50 basis point reduction as their base case for September, citing a shift in Fed officials’ preferences towards lower rates. On Wednesday, the S&P 500 rose 0.4% to 5,620.85 points, the NASDAQ Composite increased by 0.6% to 17,817.99 points, and the Dow Jones Industrial Average edged up 0.1% to 40,890.49 points.
Upcoming Events:
Market gains were tempered by anticipation of Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium on Friday. Investors expect Powell to reaffirm the Fed’s dovish stance, though it remains uncertain if he will signal a definitive September rate cut.
After-Hours Movers:
Paramount Global (NASDAQ: PARA): Rose nearly 3% after media executive Edgar Bronfman increased his offer for the company to $6 billion from $4.3 billion. Paramount’s board is considering the revised offer, positioning Bronfman as a key contender for control of the studio.
Snowflake Inc (NYSE: SNOW): Dropped 6% following a quarterly net loss that exceeded expectations and a lackluster outlook for the year, driven by rising costs and subdued demand for its AI products.
