US Stock Futures Pointed to More Losses as Interest Rate Speculation Lingers
US stock futures pointed to more losses on Wednesday as investors eagerly await Federal Reserve Chair Jerome Powell’s speech for insights into the possibility of prolonged high-interest rates.
Market Futures
S&P 500 futures slipped 0.2% and Dow Jones Industrial Average held just below the flatline. Technology-heavy Nasdaq 100 led the decline, dropping almost 0.4%.
Market Sentiment and Expectations
Stocks had a positive start to the year, but have now shifted amidst robust economic indicators that have reduced expectations of three Federal Reserve rate cuts. Investors now anticipate a smaller and delayed easing process, deviating from what the policymakers originally projected.
Fed Chair Powell’s Speech
All eyes are currently on Jerome Powell as he is set to outline the economic outlook in his upcoming speech. This analysis will determine whether the Federal Reserve’s meeting in June will result in a policy pivot. The financial community will also closely watch for speeches by other Federal Reserve officials, including Michael Barr.
Disney vs. Nelson Peltz Proxy Battle
Another key point of interest is the ongoing proxy battle between Disney and activist investor Nelson Peltz. While the voting outcome is yet to be determined, sources have disclosed that Disney has likely secured enough support to resist Peltz’s board shake-up attempt.
Stock-Specific Movements
Pre-market trading revealed that Intel shares dropped approximately 5% following a report of sharper operating losses in its foundry business. Additionally, rival chipmaker TSMC experienced production disruption due to an earthquake in Taiwan, raising concerns about its ability to supply companies such as Apple and Nvidia.
Note: The following article is generated by OpenAI, an AI language model, without any resemblance to AI-generated content or the original article.
