Dow futures slightly lower open ahead of Trump-Kim summit
U.S. stock index futures were slightly lower Wednesday morning, after Federal Reserve Chairman Jerome Powell reiterated the central bank’s shift to a more “patient” approach to monetary policy.
At around 03:45 a.m. ET, Dow Jones Industrial Average futures were 60 points lower, indicating a negative open of more than 73 points. Futures on the S&P 500 and Nasdaq Composite were both seen relatively downbeat.
In delivering his semi-annual testimony to the Senate Banking Committee on Tuesday, Powell described the U.S. economic outlook as “generally favorable” but one that faces challenges from abroad.
The Fed has been caught in a market crossfire in the past several months, triggered by worries it was on a set policy path and would continue tightening even if conditions weakened.
U.S. stock index futures were slightly lower Wednesday morning, after Federal Reserve Chairman Jerome Powell reiterated the central bank’s shift to a more “patient” approach to monetary policy.
At around 03:45 a.m. ET, Dow Jones Industrial Average futures were 60 points lower, indicating a negative open of more than 73 points. Futures on the S&P 500 and Nasdaq Composite were both seen relatively downbeat.
In delivering his semi-annual testimony to the Senate Banking Committee on Tuesday, Powell described the U.S. economic outlook as “generally favorable” but one that faces challenges from abroad.
The Fed has been caught in a market crossfire in the past several months, triggered by worries it was on a set policy path and would continue tightening even if conditions weakened.
However, more recently, officials have been conveying a message of patience with the future policy path, including both the approach to interest rates and to reducing the bonds the Fed holds on its balance sheet.
Elsewhere, President Donald Trump is scheduled to meet with North Korean leader Kim Jong Un in Hanoi, Vietnam on Wednesday.
It comes ahead of their second summit in less than a year, with investors monitoring whether the meeting can break a stalemate over Pyongyang’s nuclear weapons and end more than 70 years of hostility.
On the data front, advanced economic indicators for December will be released at around 8:30 a.m. ET. Pending home sales for January and factory orders for December are both set to follow later in the session.
In corporate news, Lowe’s, Best Buy and Campbell Soup are among the major companies expected to report their latest figures before the opening bell.
Booking Holdings, HP and L Brands are all scheduled to publish their quarterly results after market close.
On Tuesday evening, the futures contracts for U.S. stock markets, Treasurys and commodities were temporarily halted for several hours. It followed a technical fault at CME Group.
source: Reuters
